ChainCatcher message, regarding the multiple abnormal crashes of Memes, Wintermute founder and CEO Evgeny Gaevoy added on X: "We reacted only after the movement and arbitraged the AMM pools."

ChainCatcher message, Matrixport released today's chart, showing that Bitcoin is attempting to break through the downward trend, benefiting from the Federal Reserve's slightly dovish stance and Trump's suggestion of a more targeted approach to tariffs. Compared to the past few weeks, these changes provide a more constructive environment for the market.Additionally, as the end of the quarter approaches, the selling pressure from arbitrage funds is easing, due to persistently low funding rates and the fact that most of the selling has nearly come to an end. Although the current catalysts are not sufficient to support Bitcoin in reaching a new all-time high, the market outlook has significantly improved.

ChainCatcher news, according to an analysis by Shen Yu, co-founder and CEO of Cobo, Strategy (MSTR) cleverly amplifies Bitcoin's high volatility by 2.5 times to the U.S. stock market.Professional institutions utilize this high volatility for arbitrage, gaining short-term profits; MSTR raises cash through issuing convertible bonds and ATM share increases to accumulate a large amount of Bitcoin; common shareholders bear the severe stock price fluctuations and short-term decline risks, but passively receive the "Bitcoin yield" from the increased Bitcoin per share; Bitcoin holders benefit from the continuous influx of market funds and the rise in Bitcoin prices.

ChainCatcher news, the Roam reverse burn feature has been launched, allowing users to convert ROAM tokens back to Roam Points within the app. The reverse conversion rate is based on the average rate of the general pool and the sticker pool, with 97% of the reverse burn tokens being immediately destroyed. This mechanism and the official burn pool feature will be activated after the TGE. Since the conversion efficiency of the sticker pool is higher than that of the general pool, users holding enough stickers can convert tokens into points through the reverse mechanism and then burn them in the normal sticker pool to earn more tokens for arbitrage. The number of stickers is the key burning material, which can only be obtained by checking in through the app. This process incentivizes users to participate in network validation, enhancing the value of ecological data, advertising, and traffic, and increasing cash income.The Roam burn pool went live on March 8 at 7:30 AM Beijing time. Through a dual burn mechanism, it will achieve dual deflation of points and tokens, ensuring the long-term stability of both values. Previously, on March 6 at 6:00 PM, ROAM spot trading went live, opening at $1.0433 and later stabilizing at $0.39, with trading volume exceeding expectations. The contract feature was launched on March 7 at 6:00 PM on seven exchanges including Bybit, Bitget, and LBank, supporting 1-50x leverage perpetual contracts, with a strong market response further injecting momentum into the ecosystem.

ChainCatcher message, Matrixport analysis indicates that since the launch of the Bitcoin ETF in January 2024, the outflow of funds this month has reached a new high, which may be related to hedge funds closing basis trades (going long on ETFs and shorting futures). This trend is consistent with the reduction of $8 billion in open contracts for Bitcoin futures on the CME after the Federal Reserve's FOMC meeting in December 2024, which exceeds the total inflow of funds into ETFs by 20%.Additionally, the expiration of February futures contracts may also be a source of selling pressure, but this factor has currently been absorbed by the market. Matrixport believes that as the impact gradually weakens, hedge funds may reduce ETF sell-offs and reassess arbitrage opportunities in late March. At present, ETF selling pressure seems to have temporarily halted.

ChainCatcher news, Matrixport released a report stating that the recent market adjustment of Bitcoin is mainly influenced by hedge funds, rather than Wall Street investors.The report pointed out that at least 25% of Bitcoin ETF funds are related to arbitrage trading, and as much as 55% of ETF fund inflows come from hedge funds focused on arbitrage, rather than long-term investors. Since the Federal Reserve's Open Market Committee meeting in December, the significant decline in arbitrage profit opportunities has led to a decrease in trading volume, prompting hedge funds to unwind their arbitrage positions, resulting in record outflows from Bitcoin ETFs.The strengthening of the dollar has led to a decline in global liquidity indicators, putting downward pressure on Bitcoin prices.

ChainCatcher news, according to a post by Lin, the Asia Pacific Business Head of Deribit, "The annualized BTC basis is still at 8%, and with leverage, the returns can still hold; it's not yet time for traditional arbitrage funds to exit."

ChainCatcher news, according to Zhu Su, co-founder of Three Arrows Capital, stated that "blaming the Libra incident on Solana or the Jupiter platform is as unreasonable as blaming decentralized finance (DeFi) hacking incidents or NFT issues on Ethereum or Uniswap."Zhu Su pointed out that the main mistake of the Libra team was withdrawing from the Meteora liquidity pool and engaging in short-term arbitrage operations; otherwise, it would be similar to the operation of Trump tokens.

ChainCatcher news, CoinDesk senior analyst James Van Straten stated that Goldman Sachs sparked heated discussions on Twitter in the crypto space after disclosing its holdings of a small amount of spot Bitcoin ETF shares in its 13F filing, but the reality is not as people expected.First, these ETFs are not entirely a bet by Goldman Sachs' trading desk on the price of Bitcoin (BTC). These shares are almost certainly held by the bank's asset management division, Goldman Sachs Asset Management, for its clients.Second, while the filing (ownership snapshot as of December 31, 2024) shows it holds $288 million in shares of the Fidelity Bitcoin ETF (FBTC) and $1.3 billion in shares of the BlackRock Bitcoin ETF (IBIT), it also shows a nominal value of over $600 million in put option positions (as well as a small amount of call option positions).James stated, "Goldman's position is similar to many other banks and hedge funds and is not a net long position. It is a strategy that reflects underlying trading, also known as cash and arbitrage trading, balancing the potential profits and risks of Bitcoin price fluctuations. The ETF recently received options approval, so this is likely directional hedging."

ChainCatcher news, WhaleWire founder Jacob King posted on social media that the main reason for the sharp decline in stock futures is that yen arbitrage traders have to sell off assets, and this week could be very bloody.Jacob explained that in August 2024, Japan raised interest rates from 0.1% to 0.25%, leading to a flash crash. Now, Japan has raised interest rates to 0.5%, with a 2-year yield of 0.71%. Japan's higher interest rates are ending yen arbitrage trading, where investors borrow cheap yen to invest in other assets. Now, borrowing costs are rising, which means they have to sell assets to repay loans.

ChainCatcher news, according to CoinDesk, analyst James Van Straten stated that since November 20, CME's open interest has decreased by nearly 30,000 contracts to 185,485 contracts. During the same period, net inflows into U.S. spot-listed ETFs exceeded $3 billion. This unusual phenomenon indicates that investors are shifting towards a purely long strategy, rather than the previously common spot-futures arbitrage model.James Van Straten explained that since the ETF listing in January this year, institutional investors have primarily adopted a spot-futures arbitrage strategy, which involves holding long positions in ETFs and short positions in futures to profit from the price difference. Currently, the annualized basis for CME three-month futures remains at a substantial level of 16%, significantly higher than the U.S. 10-year Treasury yield and Ethereum staking yield, but investors seem more inclined to directly bet on Bitcoin's upward trend through ETFs.

ChainCatcher message, Shen Yu shared five different levels of difficulty in trading in the crypto market on X, from low to high:Arbitrage TradingThe lowest difficulty, requiring only basic calculation skills; the focus is on execution.Bottom FishingRequires position management skills; emotional control ability; sufficient capital reserves are key.Heavy Position After Selling HighHigher psychological quality requirements; requires strong mindset adjustment ability.Top-Taking OperationRequires comprehensive analysis of multiple dimensions; tests market insight and quick response ability; involves factors such as fundamentals, macroeconomics, and group sentiment.Leverage TradingThe highest difficulty, with the greatest risk; significantly amplifies volatility and reduces survival rate; requires precise timing for bottom fishing, heavy positions, and top-taking.Shen Yu stated that after years of trading, he no longer holds any expectations for top-taking, and the only thing he has learned is how to take over positions.

ChainCatcher news, former Goldman Sachs executive and founder of macro research firm Real Vision, Raoul Pal, stated on social media: "One day, people will realize that the biggest users of Bitcoin ETFs and most of the trading volume come from hedge funds, which are arbitraging between spot and futures, perpetual contracts. The inflow of funds is mainly not directional, only marginally impactful."Raoul Pal believes that most of the funds flowing into Bitcoin ETFs are not based on investors betting on the long-term rise and fall of Bitcoin (i.e., directional investment). Instead, this capital primarily comes from hedge funds using ETFs for short-term arbitrage, aiming to profit from price differences rather than relying on the price movement of Bitcoin itself, and most of the activity does not reflect the broader market sentiment towards Bitcoin's price trends.

According to ChainCatcher news and the official announcement, Binance Wealth Management has launched a smart arbitrage service. Users can earn funding fees by hedging positions in perpetual contracts and the spot market, aiming to help users profit from funding rate payments while minimizing price volatility risks. The service includes leveraged funding rates, delta-neutral strategies, and risk management features. Users can subscribe to the smart arbitrage service through the Binance Wealth Management platform. During the promotional period, subscribing with USDT can yield an annualized return of up to 17.18%. The promotional period is from October 14, 2024, 06:00 (UTC) to October 27, 2024, 23:59 (UTC).

ChainCatcher news, according to the official message from the SlowMist security team, a new type of arbitrage MEV bot scam has recently been discovered and reported, urging all users to avoid clicking on unknown links or running suspicious code. If scammers claim that the code was generated by ChatGPT, users can use tools like ChatGPT or Claude to review the code and check for any malicious behavior.It is reported that many users have recently used ChatGPT-related arbitrage bots and invested funds in pursuit of passive income, but after following the scammers' instructions, they found their funds stolen. Users should remain vigilant, carefully check for traps, and protect their assets from harm.

ChainCatcher news, Matrixport released a chart stating that as implied volatility remains low, Bitcoin traders need to establish corresponding positions to prepare for a potential bull market that may arise from Trump's victory. Bitcoin options will expire on November 8, 2024, but the market has not shown extreme positioning, indicating that traders are cautious about the election results. However, the strike prices of $65,000 and $70,000 suggest that many traders are anticipating a market rebound.The trading volume in the Bitcoin options market this year has ranged between $42 billion and $71 billion, gradually replacing the underperforming crypto stocks since the Bitcoin halving in April 2024, becoming a more favored leveraged tool among traders. Additionally, although MicroStrategy's current stock price is higher than the value of its held Bitcoin, holding MicroStrategy shares has become an alternative option for gaining direct exposure to Bitcoin.At the beginning of this year, the macroeconomic situation improved, and Bitcoin prices rebounded at one point, but as both market structure and liquidity driving factors weakened, a pullback occurred.Trump's victory could bring positive news for Bitcoin, but if the Federal Reserve adopts a tightening monetary stance to counteract the excessive economic stimulus from Trump's policies, the rise will face resistance. During this pre-election period, traders looking to profit in the short term may consider using call option arbitrage strategies to manage risk and capture upside gains.