The Ultimate Guide to Crypto Triangular High Frequency Arbitrage Bots
In the world of cryptocurrency trading, one strategy that has gained significant popularity is triangular high frequency arbitrage. This advanced trading technique involves taking advantage of price differences between three different cryptocurrencies to make a profit.
But how can you effectively implement this strategy? The answer lies in using a crypto triangular high frequency arbitrage bot. These bots are designed to automatically monitor the markets, identify arbitrage opportunities, and execute trades in a matter of milliseconds.
So, what makes the best crypto triangular high frequency arbitrage bot? First and foremost, it should have a robust and reliable algorithm that can quickly analyze the market data and identify potential arbitrage opportunities. Speed is crucial in this type of trading, so the bot should be able to execute trades with minimal delay.
Additionally, the bot should have a user-friendly interface that allows traders to easily configure their trading parameters and monitor their trades in real-time. It should also offer advanced features such as risk management tools, backtesting capabilities, and customizable trading strategies.
When choosing a crypto triangular high frequency arbitrage bot, it’s essential to consider factors such as security, customer support, and pricing. Look for a bot that offers robust security features to protect your funds and personal information. Responsive customer support is also crucial in case you encounter any issues or have questions about the bot’s functionality.
Finally, make sure to test and compare different bots before making a final decision. Many bot providers offer free trials or demo accounts, allowing you to assess their performance and suitability for your trading needs.
CME Group set to introduce ETH to BTC Ratio futures
According to the announcement, the settlement of Ether/Bitcoin Ratio futures will be in cash, based on the final settlement price of CME Group’s Ether
ETH $1,892 futures divided by the final settlement price of CME Group’s Bitcoin
BTC 
$30,972 futures. Moreover, this new contract will adhere to the identical listing cycle observed in CME Group’s Bitcoin futures and Ether futures contracts.
Giovanni Vicioso, CME Group’s global head of cryptocurrency products, emphasized the potential for relative value trading opportunities between Ether and Bitcoin. Vicioso highlighted that while these two assets have historically displayed high correlation, their market dynamics may now vary, making it possible to capitalize on their performance differences. He added:
“With the addition of Ether/Bitcoin Ratio futures, investors will be able to capture ether and bitcoin exposure in a single trade, without needing to take a directional view. This new contract will help create opportunities for a broad array of clients looking to hedge positions or execute other trading strategies, all in an efficient, cost-effective manner.”
On April 17, CME Group announced plans to expand its cryptocurrency options by introducing new options for standard and micro-sized Bitcoin and Ether contracts. These new contracts were set to become available from May 22, pending regulatory review.
The expansion included daily expiries from Monday to Friday, allowing traders to better manage short-term price risks. This move aimed to offer market participants increased precision and flexibility in managing Bitcoin’s and Ether’s short-term price risks amid heightened volatility in the digital asset sector.
Crypto enthusiasts are wrong to target Gary Gensler
The animus of the entire crypto world is focused on Securities and Exchange Commission Chair Gary Gensler.
Critics argue that he paints cryptocurrencies with too broad a brush. They argue that he gaslights well-meaning entrepreneurs by encouraging them to “come in and register,” knowing his process is set up for them to fail. They argue he knows new rules are needed but prefers to enforce impractical rules in order to stifle the industry altogether. And, of course, under his leadership, the SEC filed an enforcement action against Coinbase, arguing several top coins, including Polygon’s MATIC
SOL 
$17 and others are securities largely because their issuance involved capital formation, despite their necessity in operating underlying networks.
And it’s not just naysayers in the peanut gallery. The campaign is costing the United States dearly. Venture capital investment in the U.S. crypto industry has fallen this year compared to the European Union. America is losing its lead, and time is of the essence.
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The cynical explanation for Gensler’s position is political. Gensler taught a course on blockchain at MIT and is on tape explaining how not all tokens are securities, so he presumably understands the nuances of digital assets. Rather, he is playing dumb to implicitly support the agenda of Massachusetts Senator Elizabeth Warren, who is mobilizing an “anti-crypto army” and has been informally deputized by the administration of President Joe Biden to define crypto policy. If Biden wins the presidency again, perhaps this will help Gensler earn an appointment as Treasury secretary.
In response, lawmakers are piling on with bills proposing to fire him. Representatives Warren Davidson and Tom Emmer introduced the “SEC Stabilization Act,” which proposes removing Gensler and restructuring the agency to make it less partisan.
Bitcoin and correlations — Examining the relationship between BTC, gold and the Nasdaq
Some news sources have been fond of making comparisons between Bitcoin’s
BTC $29,959 price action and that of other assets. In particular, the two most commonly compared asset classes are gold and tech stocks.
While a correlation holds, it tends to be a big news story. Throughout much of 2022 and early 2023, for example, the “Bitcoin trades in tandem with tech stocks” narrative was prevalent. Since that correlation has broken down, however, there doesn’t seem to be much related news coverage.
Now a new narrative has taken the spotlight: that of Bitcoin’s correlation to gold. Ever since the failures of Silvergate, Signature Bank, and Silicon Valley Bank in March, both assets have rallied. Both of these narratives make sense on the surface. If Bitcoin is to be seen as a speculative asset, then it might trade similar to a tech stock. And if Bitcoin is more of a safe-haven asset, a correlation to gold seems reasonable.
It’s important to note, however, that correlations can come and go. Just because two assets share a correlation for a time doesn’t always mean they share a place in the market long-term. And when zooming out to larger timeframes, it might be possible to rule out correlations of any kind.
Let’s examine both of these correlations on a one-year basis and see if there’s any merit to them.
Bitcoin, gold and NASDAQ: one-year correlation analysis
Year-to-date, Bitcoin has gained roughly 58%, rising from $16,600 at the start of the year to over $26,000 today. On the same timeframe, the NASDAQ has gained about 36%, rising from 11,000 to just shy of over 15,000.
Meanwhile, gold has risen by just over 7% YTD.
According to the 90-day correlation coefficient, BTC is positively correlated to gold (0.58) and negatively correlated to tech stocks (-0.65) right now. For the majority of this year, BTC has been highly correlated to both assets. At the beginning of the year, the correlation to gold was deeply negative, while the correlation to tech stocks was just below neutral.
So then, which is it? Safe-haven correlation or risk asset correlation? Or does the presence of multiple correlations point to no correlation at all? Does similar price action on a yearly basis constitute a significant relationship between two assets in the first place?
Such a discussion could get quite lengthy. These questions are best interpreted on a rhetorical basis, i.e., they imply that there could be any number of assets who share similar patterns of price action on a one-year chart.
When looking at the question in terms of percentage gains, things look more different still: gold is up 9%, while Bitcoin is up 18% and the NASDAQ 30%.
It would be great if we could glean some significance from the fact that Bitcoin has a tendency to be correlated with equities for a time now and then. But so far this year, the relationship between the two remained constant throughout the banking crisis that began in March and led to a large rally for BTC. Since then, the relationship has disappeared, as the NASDAQ had rallied to YTD highs and BTC has mostly traded sideways.
On a long enough timeline, everything breaks down
Over the past 14-years, Bitcoin has risen against the US dollar by tens of millions of percentage points. There are few asset classes that can boast similar returns. Other assets don’t carry the same degree of volatility either, making a long-standing correlation even less likely.
To date, gold has risen from $800 in early 2009 to $1,945 today, a gain of almost 150%.
The NASDAQ is up more than 10x since early 2009, or returns in excess of 1,000%. Nice gains, but a far cry from the 52,000,000% that Bitcoin returned from July 2010 to present.
The key takeaways here are:
- An asset that rises by more than 50,000,000% over the course of its lifetime might not be correlated to much else.
- The correlations between Bitcoin, gold, and tech stocks often can’t be seen on timeframes in excess of a year or two.
- Due in large part to the previous two points, the correlations don’t hold much significance.
Investors would do well to keep this in mind when interpreting markets. Banking on any specific correlation as part of a strategy could be risky, as that correlation could break at any moment.
Bitcoin holds $30K as bulls flaunt their advantage in Friday’s $715M BTC options expiry
Bitcoin’s 15% rally toward $30,300 between June 19 and June 21 caught most traders by surprise, triggering $125 million in liquidations of leveraged short futures contracts. Narrowing down the trigger for the rally is complicated, but some analysts point to the potential inflow of institutional investors if BlackRock’s exchange-traded fund (ETF) application gets regulatory approval.
ARK Invest CEO and chief investment officer Cathie Wood explained the rationale for the firm’s bullishness on the Bitcoin
BTC $29,929 price, specifically its $1 million target. According to Wood, even in a deflationary environment, Bitcoin can still outperform by offering a solution to the traditional financial system’s counterparty risk.
Furthermore, the negative regulatory pressure eased on June 16 after Binance was able to strike a temporary agreement with the U.S. Securities and Exchange Commission to avoid a potential asset freeze. The event further cemented Bitcoin bears’ opportunity to profit on the $715 million weekly BTC options expiry.
Bears made a mistake when BTC’s price dropped below $25,000
Bitcoin’s price dropped below $26,300 on June 10, fueling bearish bets by traders using options contracts. Such a level was only recouped on June 16, which explains why bears have concentrated their bets on Bitcoin trading below $27,000.
The 0.82 put-to-call ratio reflects the difference in open interest between the $415 million call (buy) options and the $300 million put (sell) options. However, the outcome will be lower, as bears were caught by surprise as Bitcoin gained 10% in two days.
For instance, if Bitcoin’s price remains near $29,800 at 8:00 am UTC on June 23, there will be only $5 million in put options. This distinction arises since the right to sell Bitcoin at $28,000 or $29,000 is rendered void if BTC trades above that on the expiry.
Bulls are in a good position to capture a $250 million profit
Below are the four most likely scenarios based on the current price action. The number of options contracts available on June 23 for call (buy) and put (sell) instruments varies depending on the expiration price. The imbalance favoring each side constitutes the theoretical profit:
- Between $27,000 and $28,000: 3,500 calls vs. 1,200 puts. The net result favors the call (buy) instruments by $60 million.
- Between $28,000 and $29,000: 7,300 calls vs. 500 puts. The net result favors the call instruments by $195 million.
- Between $29,000 and $30,000: 8,600 calls vs. 100 puts. The bulls’ advantage increases to $250 million.
- Between $30,000 and $31,000: 10,400 calls vs. 0 puts. Bulls have total control, profiting $310 million.
This rough estimate considers only put options in bearish bets and call options in neutral-to-bullish trades. Nonetheless, this oversimplification excludes more complex investment strategies. A trader, for example, could have sold a call option, effectively gaining negative exposure to Bitcoin above a specific price, but this effect is difficult to estimate.
Binance SEC lawsuit could dent crypto exchange’s global plans
The United States Securities and Exchange Commission filed a lawsuit against Binance along with its U.S. platform and CEO Changpeng Zhao on June 5 in a Washington, D.C. federal district court for allegedly violating securities laws and offering unregistered securities.
The U.S. regulator has accused the crypto exchange of offering unregistered securities in the form of its now-paused Binance USD BUSD $1.00 stablecoin and its native token BNB
BNB $240 . The SEC also deemed its Simple Earn and BNB Vault products and its staking program as violations of securities law.
The SEC further alleged that Binance.US and its legal company, BAM Trading, failed to register as an exchange, broker or clearing agency and named Zhao as a “controlling person.” Although Binance has maintained throughout that the global entity, as well as the U.S.-based crypto platforms, are independent, the lawsuit alleged that the funds from the Biance global platform and Binane.US were co-mingled on multiple occasions. The suit also listed nine crypto tokens trading on the platform as securities — Solana
SOL $17 , Cardano ADA $0.290 , Polygon MATIC $0.6558 , Filecoin FIL $3.92 , Cosmos ATOM $9.03 , The Sandbox SAND $0.42 , Decentraland MANA $0.37 , Algorand ALGO $0.13 , Axie Infinity AXS $5.35 and Coti (COTI).
The SEC lawsuit, which levies 13 charges against the crypto exchange, its U.S. entity and the CEO, came within weeks of a Reuters report alleging the exchange was comingling customer funds.
The report alleged that the crypto exchange mixed its corporate revenue with customer funds in 2020 and 2021 and that the commingling occurred on a daily basis.
Reuters cited three insiders with knowledge of the crypto exchange’s finances and further claimed that the majority of commingling had occurred on accounts held at now-bankrupt Silvergate Bank, with amounts reaching the billions of dollars.
The report also claimed that many of the Silvergate accounts involved in comingling were linked to Zhao. At the time, Binance had refuted the claims and called it a conspiracy theory, only for the SEC to include those accusations in their lawsuits just a few weeks later.
Binance refuted the accusations made by the SEC in the lawsuit in a blog post and claimed that the onus falls on the SEC for not offering any clear regulatory guidelines for crypto platforms in the United States.
The SEC lawsuit also came within months of another lawsuit against the crypto exchange and CEO Zhao by the United States Commodity Futures Trading Commission on March 27. The CFTC lawsuit had alleged violations of derivatives law and failure to register with the required authorities.
Recent: Opinion: GOP crypto maxis almost as bad as Dems’ ‘anti-crypto army’
The SEC lawsuit might have taken many by surprise even though the security regulator has been investigating the crypto exchange since early 2022.
The SEC’s social media post, highlighting an insider message from Binance’s chief compliance officer from 2018, further raised eyebrows.
Binance launches regulated platform in Kazakhstan amid troubles in the West
Global cryptocurrency exchange Binance announced the launch of a regulated digital asset platform in Kazakhstan amid growing regulatory troubles in the West. The launch of the new platform was announced at a press event on June 20, 2023, in the presence of representatives of Kazakhstan’s banking industry and Binance Kazakhstan’s leadership.
The cryptocurrency exchange obtained an in-principle approval to operate in Kazakhstan in August and a permanent license to offer a digital asset platform and provide custodial services at the Astana International Financial Center (AIFC) in the country from the AIFC Financial Services Authority in October last year.
The new platform will offer a slew of crypto and fiat-focused services for Kazakhstani users, including exchange and conversion services, deposit and withdrawal of fiat, and custody of crypto assets.
The banking services will be offered by Kazakhstan’s Freedom Finance Bank bank, which will allow the new digital asset exchange users to transfer fiat funds to their accounts on the platform. There are two fiat channels available to deposit and withdraw at present namely bank cards and bank transfers via Freedom Finance Bank.
Binance Kazakhstan general manager – Zhaslan Madiyev told Cointelegraph that their progress in Kazakhstan goes beyond the digital asset platform and added:
“Today we launched a local crypto exchange Binance in Kazakhstan integrated with the bank channel. This is the first such project in the region. Binance Kazakhstan is going to adopt Binance’s best practice for their further deployment on a regional scale. In particular, we intend to develop the human capital of the country and the industry, so that future specialists and experts in blockchain can create their own projects and products for the further development of the entire industry and its gradual introduction into the daily lives of citizens”
The latest move for the leading crypto exchange by trading volume comes amid growing regulatory troubles in the United States and several European countries. Binance is currently embroiled in a U.S. Securities and Exchange Commission lawsuit and a lawsuit from the Commodity Futures Trading Commission.
Binance, Binance.US and CZ allege SEC made ‘misleading’ statements on exchange assets
Lawyers representing United States-based crypto exchange Binance.US, global exchange Binance Holdings Limited and Binance CEO Changpeng “CZ” Zhao have filed a motion alleging the U.S. Securities and Exchange Commission (SEC) misled the public in statements issued over an ongoing securities lawsuit.
In a June 21 filing in the U.S. District Court for the District of Columbia, the legal teams for Binance, Binance.US and CZ claimed the SEC had made “misleading” statements in a June 17 press release and filed a motion for the financial regulator to comply with “applicable rules of conduct.” The filing referred to SEC Enforcement Director Gurbir Grewal claiming CZ and Binance could “commingle customer assets or divert customer assets as they please” and an order requiring all parties involved in the lawsuit to return to the United States.
“The SEC has no evidence that BAM [Binance.US] customer assets have been dissipated, commingled or misused in any way,” said the June 21 filing. “The SEC’s press release also appears to be designed to introduce unwarranted confusion into the marketplace, which could have the effect of harming BAM customers rather than protecting them. It also risks tainting the jury pool with misleading descriptions of the evidence concerning the Defendants.”
Binance faces scrutiny in Brazil, exec summoned to testify before Congress
Deputy Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, has requested the summoning of Guilherme Haddad, the director of Binance Brazil, to appear before the Brazilian parliament as part of an ongoing Parliamentary Commission of Inquiry (CPI) investigation into alleged pyramid schemes in the country.
The June 21 request will be voted on by members of the CPI on June 27.
According to a translation of the Brazilian news outlet Portal do Bitcoin, if the vote is approved, Haddad will be summoned to appear before the Brazilian Chamber of Deputies if the vote is approved. This development comes amid a global regulatory crackdown on the largest cryptocurrency exchange. Binance has faced scrutiny from authorities in the United States, France, the Netherlands, the United Kingdom and Brazil, underscoring international attention on the company.
Furthermore, the deputy claimed that Binance was utilized by pyramid schemes in the country to facilitate asset transfers.
He said:
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“Hence, it is vital to understand Binance’s operations, its association with B Fintech, and its involvement with companies facing legal action for harming Brazilian consumers, as this strongly links Binance to the ongoing investigation.“
Authorities in the South American nation explained that the intent for summons is due to the fact the company is facing the scrutiny mentioned above from regulators worldwide. In Brazil, Binance is also being investigated by the Federal Prosecutor’s Office and Federal Police. The cryptocurrency exchange has allegedly been helping clients evade a stop order on cryptocurrency derivatives investments.
Related: Binance, Binance.US and CZ allege SEC made ‘misleading’ statements on exchange assets
The Securities and Exchange Commission of Brazil has already been pressing Binance to stop offering Bitcoin futures products to Brazilian customers, according to a previous report from Portal do Bitcoin.
Binance did not immediately reply to a request for comment from Cointelegraph by the time of publication.
Curve pool imbalance triggers USDT depeg concerns: Finance Redefined
Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.
On June 15, an imbalance in Curve Finance’s 3pool led to a Tether
$1.00 depeg scare as the stablecoin’s weightage in the pool rose above 70%, leading to heavy selling. Tether’s chief technology officer claimed these market conditions are stress tests for the stablecoin and played down the depeg “FUD.”
In other news, a crypto trading bot programmed to execute arbitrage trades borrowed $200 million to make just over $3 in profit.
Uniswap, the decentralized exchange protocol, released its version 4 code on June 13, making way for new liquidity pools.
DeFi lending platform Sturdy Finance was drained for $800,000. The protocol’s team offered a $100,000 bounty for returning the funds and reopened its stablecoin market on June 16. In another exploit, the Hashflow protocol was drained for $600,000; however, Hashflow assured users they would be “made whole.”
The top 100 DeFi tokens had another bearish week, with most of the crypto tokens trading at three-month lows.
Curve pool imbalance triggers USDT depeg concerns, Tether CTO calls it FUD
USDT slightly deviated from its United States dollar peg on June 15 due to an imbalance in Curve’s 3pool. The price of USDT fell by 0.3% to around 0.997 as its weightage in the curve 3pool increased to over 70% from the usual 33.1%.
Curve’s 3pool is a stablecoin pool for decentralized finance holding a massive amount of liquidity in the three top stablecoins: USDT, USD Coin
$1.00 and Dai
DAI
$1.00 . A significant rise in the weightage of a particular stablecoin in the pool indicates heavy selling of that asset.