Core Insights - Centralized exchanges have traditionally dominated crypto price discovery, but this dynamic is shifting with the emergence of Hyperliquid, a self-funded on-chain perpetuals exchange [1] - Hyperliquid's founder claims it is now the "most liquid venue for crypto price discovery," challenging long-held industry assumptions [1][2] Liquidity Analysis - Hyperliquid's liquidity claim is particularly focused on Bitcoin perpetual futures, where it shows competitive metrics such as tight spreads and deep order books [3] - Bitcoin perpetual spreads on Hyperliquid are around $1, compared to approximately $5.50 on Binance, indicating a significant advantage [3] - The cumulative ask liquidity on Hyperliquid is about 140 BTC, while Binance has an estimated 80 BTC at comparable levels, suggesting better execution for traders [4] Transparency and Verification - Hyperliquid's liquidity is fully visible and verifiable on-chain, allowing for independent real-time audits of order book and execution data, unlike centralized exchanges [4] Market Expansion - Hyperliquid has expanded beyond crypto-native assets, supporting permissionless perpetual markets tied to traditional assets like commodities, with open interest nearing $790 million, largely driven by gold and silver trading [5] Rapid Growth - Launched in 2023 without venture capital, Hyperliquid has quickly risen to control over 70% of decentralized perpetuals liquidity and shows tighter BTC spreads than Binance [6][7] - After significant growth in 2025, Hyperliquid now commands over $8 billion in open interest, establishing itself as the dominant decentralized exchange for perpetuals [7]

Core Viewpoint - Bitcoin has reclaimed the $90,000 level, but the underlying market conditions remain fragile, with traders adopting a defensive stance [1]. Market Sentiment - There are few signs of sustained optimism in crypto derivatives markets despite Bitcoin's recent price rebound [1]. - Most bets in Bitcoin perpetual and dated futures are concentrated in short-term contracts, indicating muted demand for longer-dated futures on the Chicago Mercantile Exchange, which is a key indicator of institutional interest [2]. Research Insights - Vetle Lunde from K33 Research noted that while morale is improving, overall sentiment remains cautious and hands-off despite the recent uptrend [3]. - Spot volumes, volatility, and derivatives leverage are near pre-December lows, with 86% of open interest in front-month expiry contracts, suggesting limited bullish positioning [4]. Price Movements - Bitcoin's price dropped 6.5% to $87,648 last year and was down about 1% to $92,107 as of early Wednesday [5]. - The first few trading days of the year saw a reversal of persistent selling, with significant inflows into Bitcoin ETFs marking the strongest single-day net inflow since October 7 [5]. Future Activity - Further gains in Bitcoin could stimulate activity in CME futures contracts, as the basis trade becomes attractive again [6]. Comparative Analysis - Bitcoin's relative stagnation compared to gold and equities raises questions about its value as an asset class, with declining volatility suggesting that the best performance days for cryptoassets may be behind [7].

Core Viewpoint - Singapore Exchange Derivatives will launch Bitcoin and Ethereum perpetual futures on November 24, becoming the first major Asian exchange to offer exchange-cleared crypto perpetual futures [1] Product Specifications - Bitcoin contracts will be sized at 0.2 BTC with a minimum price fluctuation of $1, while Ethereum contracts will be sized at 5 ETH with the same tick value [2] - The perpetual futures will utilize a funding rate mechanism to rebalance supply and demand, with funding rates capped at plus or minus 35 basis points and an average spread of 3 basis points when trading remains within defined parameters [3] Trading Sessions - Trading will occur in two sessions under Singapore time: the T session from 7:05 a.m. to 4:00 p.m. and the T+1 session from 4:05 p.m. to 5:15 a.m. the following day, with both contracts cash-settled in USD [4] Access and Regulation - Access to the contracts is limited to qualified participants, including institutional entities and expert investors, with accredited investors required to have net personal assets exceeding S$2 million or an annual income over S$300,000 [4][5] Market Context - Perpetual futures account for over $187 billion in daily trading volume globally, primarily on offshore, unregulated platforms, with SGX's launch following similar products introduced by Bitnomial Exchange, Coinbase Derivatives, and One Trading [6] - The launch aligns with Singapore's broader tokenization initiatives as the Monetary Authority of Singapore continues to develop regulated digital asset infrastructure [5] Institutional Perspective - Michael Syn, President of SGX Group, emphasized that the launch applies institutional discipline to crypto's most traded derivative structure, providing institutions with the trust and scalability required for crypto exposure [7]

Market Trend - Singapore Exchange to launch Bitcoin and crypto perpetual futures, indicating growing institutional interest in Asia [1] - Asia is becoming a significant player in the Bitcoin and crypto market [1]