Coinbase is reportedly in talks to acquire Deribit, but nothing is certain yet. If the deal goes through, it could turn Coinbase into a “crypto empire,” thanks to the lucrative derivatives market.

Last year, Deribit posted nearly $1.2 trillion in options, futures, and spot trading. Coinbase has comparatively little derivatives volume, and this merger could supercharge the firm.

Will Coinbase Acquire Deribit

Coinbase, one of the world’s largest crypto exchanges, has gone through a few changes recently. Since the SEC dropped its lawsuit against the company, it’s been able to expand its services. According to a new report from Bloomberg, Coinbase is currently in talks to acquire Deribit.

Deribit is the world’s largest crypto derivatives exchange, an industry sector that isn’t Coinbase’s strong suit. The firm first filed to offer these services in 2021, but Coinbase Derivatives hasn’t been a huge share of its trade volume. Granted, it sought approval for new futures contracts in January, but this is not a primary source of revenue.

However, since the crypto market has suffered from lasting doldrums, there may be an opportunity for future growth. Earlier this month, Coinbase traffic dropped 29%, and a Deribit acquisition may give it huge new revenue streams. Bloomberg claimed that Deribit’s total trade volume last year was nearly $1.2 trillion, which could be a huge asset:

“Anyone else notice how Coinbase is quietly becoming a crypto empire? They’re about to buy Deribit – one of the biggest crypto derivatives exchanges out there. They’re turning into a global powerhouse. Smart move targeting derivatives – that’s where the real volume is,” Zach Humphries claimed in a social media post.

The report had no clear stance on how likely a deal between Coinbase and Deribit might be nor how much it might cost. In January, Deribit considered an offer to get acquired by Kraken for $5 billion, but the deal fell through. If Coinbase pulled the trigger on it, it could become one of the most important business deals in crypto history.

Until we have more information, it’s difficult to make any firm statements about likely outcomes. For example, Deribit was forced out of one of its largest markets last month due to EU sanctions, but a Coinbase acquisition may not change that equation. If a deal does happen, Coinbase will have a real chance to dominate a very lucrative market.

The crypto market had a rather stable week, with the leader, Bitcoin, safe from witnessing any sharp rise or fall. This extended to the meme coins as well, with the lack of volatility resulting in altcoins taking a direction.

BeInCrypto has analyzed three meme coins that took different directions as the market conditions improved.

Toshi (TOSHI)

TOSHI saw a 22% decline this week, but it managed to hold above the critical support level of $0.000331. This resistance has helped prevent further downside, though the ongoing bearish trend has put the meme coin under pressure.

If the bearish momentum continues, TOSHI risks falling below the $0.000331 support, potentially hitting $0.000194. A drop to this level would result in significant losses for investors and may signal deeper bearish sentiment in the market.

Should TOSHI manage to bounce off the $0.000331 support, a recovery toward $0.000420 is likely. A breach above $0.000420 could propel TOSHI towards $0.000577, indicating a potential rally. This positive price action would mark a shift in sentiment.

Peanut The Squirrel (PNUT)

PNUT has experienced minimal price movement, slipping by 4% over the last seven days to trade at $0.163. Unlike many altcoins, it neither saw a significant surge nor a sharp decline. The price action has remained relatively stable, reflecting the market’s cautious sentiment toward the meme coin.

There is a chance that PNUT could face further declines, potentially testing the support level at $0.152. If the price fails to hold this level, it could fall to $0.137. This would signal increased bearish pressure, making it difficult for PNUT to recover unless market conditions improve substantially.

However, if PNUT capitalizes on a recovery and benefits from an improving market sentiment, it could rise to $0.182. A successful breach of this resistance would invalidate the current bearish outlook.

SPX6900 (SPX)

SPX has performed exceptionally well this week, registering a 26% gain. The altcoin is trading at $0.427 at the time of writing, positioning itself as one of the top-performing tokens.

SPX is currently testing the $0.406 support level. If successful in holding this support, the altcoin could see further upside, targeting $0.568. This would help recover losses sustained toward the end of February, pushing SPX toward a more stable and upward trajectory in the coming weeks.

If SPX fails to maintain $0.406 as support, it could face a sharp decline. Falling to $0.250 would mark a significant drop, reaching a five-month low. This would invalidate the bullish outlook and potentially dampen investor sentiment for the altcoin moving forward.

Shiba Inu (SHIB), the popular meme coin, has been struggling to break out of a downtrend that has persisted for the past three months. 

Despite recent efforts to regain momentum, SHIB’s price failed to sustain upward movement, indicating that the altcoin may not be able to recover just yet. As market conditions continue to fluctuate, Shiba Inu could face further challenges in its attempts at recovery.

Shiba Inu Sees LTHs Panicking

Investor sentiment has taken a bearish turn, as evidenced by the rising Age Consumed metric. This metric tracks the movement of coins that have been held for an extended period of time. During a price decline, a spike in Age Consumed often indicates that long-term holders (LTHs) are selling their positions to offset losses. 

In the case of Shiba Inu, the increasing movement of HODLed coins suggests that investors are not confident in the short-term price recovery. As a result, the market’s outlook remains cautious, with LTHs likely contributing to the selling pressure. Additionally, the current shift in market sentiment reflects growing uncertainty among Shiba Inu holders.

The macro momentum of Shiba Inu is also showing signs of weakness. The MVRV Long/Short Difference indicator, which measures the profit levels of short-term holders (STHs) versus long-term holders, suggests that STHs are dominating in terms of profits.

As STHs remain in control, the market could experience continued volatility, with investors hesitant to buy into the token without confirmation of sustained price growth. With short-term holders more likely to liquidate their assets quickly, Shiba Inu faces increased risks of further price declines.

SHIB Price Breakout Could Be Reversed

Shiba Inu’s price is currently hovering at $0.00001276, just above the support level of $0.00001275. After a brief breakout in the last 48 hours, SHIB failed to maintain upward momentum and is now facing resistance. The market sentiment suggests that further price drops could be on the horizon, and the coin could potentially slide back into the long-standing downtrend.

If the downtrend persists, SHIB could dip below $0.00001141, extending the current bear market. This would confirm the continuation of the negative price action and delay any potential recovery. Investors should remain cautious and prepare for more uncertainty in the short term.

However, should Shiba Inu manage to rebound from the support level of $0.00001275, it could potentially rise toward $0.00001462, clearing a significant resistance barrier. A break above this level would invalidate the bearish outlook and signal the start of a more substantial recovery for SHIB, allowing it to regain some of its lost value.