FX investments encompass various instruments, such as spot transactions, forward contracts, currency options and ETFs.

Foreign exchange (FX) investments involve trading currencies in the foreign exchange (forex) market, the largest and most liquid financial market globally, with a daily trading volume exceeding $7.5 trillion. Investors engage in FX trading for various reasons, including speculation, hedging against currency risk and portfolio diversification. Understanding the mechanics of FX investments and the factors that determine exchange rates is crucial for effective trading strategies.

Spot transactions involve the immediate exchange of currencies at the current market rate. This is the most straightforward form of FX trading, with trades typically settled within two business days. Spot prices fluctuate continually based on supply and demand dynamics in the market.

A forward contract is an agreement to exchange a specific amount of currency at a predetermined rate on a set future date. This type of instrument allows investors to hedge against unfavorable currency movements. For example, a company expecting to receive payments in a foreign currency can lock in an exchange rate to protect its profit margins.

Currency options provide investors with the right, but not the obligation, to buy or sell a currency at a predetermined price before or on a specific date. Options can be used for hedging or speculative purposes, allowing flexibility in trading strategies. For instance, an exporter might use a currency option to protect against a decline in the value of the currency they’ll receive.

Currency-focused ETFs allow investors to gain exposure to FX markets without directly trading currencies. These types of funds track the performance of a specific currency (or a basket of currencies), making them an accessible option for those looking to diversify their portfolios.

Futures contracts are standardized agreements that obligate the buyer to purchase (and the seller to sell) a specific amount of currency at a set price on a future date. Although these types of contracts are similar to forward contracts, they’re regulated and traded on exchanges, providing more transparency and liquidity.

In a currency swap, two parties exchange principal and interest payments in different currencies. This can be an effective way for companies to manage currency exposure and facilitate cross-border financing.

For crypto enthusiasts, there’s great news: you can now trade gold directly on Bybit! 

 provides access not only to cryptocurrencies and forex, but also to contracts for difference (CFDs). Following are the exceptional benefits offered by MT5 on Bybit:

FX rates are influenced by a complex interplay of factors, broadly categorized into economic indicators, market sentiment, geopolitical events and central bank policies.

Interest rates are a critical factor in determining currency’s perceived value, highlighting the importance of understanding how central banks set monetary policy. Inflation significantly influences these decisions, as moderate inflation is linked to economic growth, while excessive inflation can lead to rate adjustments that impact currency strength. Interest rate hikes generally slow economic growth, but they also strengthen the currency, whereas interest rate cuts encourage borrowing and spending. 

Traders focus more on expected future interest rates than on current rates, anticipating shifts in monetary policy that could signal currency movements. Interest rate differentials are also crucial, as an increasing differential typically favors the higher-yielding currency, while a narrowing one supports the lower-yielding currency. Additionally, the distinction between nominal and real interest rates is important, with markets prioritizing real rates that account for inflation. 

Finally, sudden changes in economic reports can drastically alter interest rate expectations and currency values, making it essential for traders to remain informed about financial news.

Inflation affects purchasing power and currency value. Low inflation rates typically correlate with a stronger currency, as they indicate stable economic conditions. Conversely, high inflation can erode a currency’s value. For instance, if the U.S. experiences rising inflation while the Eurozone remains stable, the U.S. dollar may weaken against the euro.

Interest rates and inflation are closely linked, impacting currency values in the forex market. When inflation rises, central banks typically increase interest rates to control price levels and stabilize the economy. Higher interest rates make borrowing more expensive, which can reduce consumer spending and investment, ultimately slowing economic growth. However, such an environment attracts foreign investors seeking higher returns, leading to increased demand for the domestic currency. For instance, in India, a rise in interest rates can boost the value of the Indian rupee as foreign investors convert their currencies to invest locally.

Consider the inflation spike in India, which has resulted in a significant depreciation of the Indian rupee against major currencies. Traders who anticipated this trend and adjusted their portfolios accordingly achieved substantial profits. The following table illustrates how interest rate adjustments correlate with currency value changes during inflationary periods.

The relationship between inflation and currency values is generally inverse. Higher inflation levels can diminish a currency's competitiveness in global markets, leading to a decline in demand for that currency. For example, if India's inflation rate is 5% while Russia's is 2%, India's real exchange rate would be 3% higher than Russia's, even if nominal rates remain unchanged.

Key economic indicators provide insights into a country's economic health, and also influence FX rates.

The fundamental economic principle of supply and demand plays a crucial role in how trade balances influence currency exchange rates. When a country experiences a trade surplus, this indicates that demand for its goods and services is exceeding that in other countries. The resulting heightened demand for the nation's currency increases its value relative to other currencies. On the other hand, a trade deficit suggests lower demand for the country's currency, which can lead to a decline in its value.

Political Stability and Economic Performance

Countries with political stability and sound economic policies attract foreign investment. Political uncertainty — such as fraught elections or governmental instability — can lead to currency depreciation as investors seek safer assets. For example, political turmoil in a country can lead to capital flight, weakening its currency.

Traders’ perceptions play a significant role in FX markets. Sentiment can be influenced by news events, economic reports and geopolitical developments. Positive sentiment can drive demand for a currency, while negative news can lead to sell-offs.

Geopolitical events, economic crises and natural disasters can create volatility in FX markets. For instance, tensions in the Middle East or economic downturns can lead investors to seek safe-haven currencies, such as the U.S. dollar or Swiss franc, impacting exchange rates.

Advanced

Understanding FX Investments and Determinants of FX Rates

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Unlocking FX Investments: Determinants of Currency Rates, and Trading With Bybit MT5

Investing in gold offers several compelling advantages, making it a strategic choice for many investors.

Throughout history, gold has been used not only as a medium of exchange but also as a store of value, sought after during economic turmoil and inflationary periods. Its intrinsic properties — durability, divisibility and portability — have contributed to its enduring appeal. As societies and economies have evolved, gold remains a critical asset, consistently viewed as a safe haven in times of uncertainty, preserving wealth across generations. Today, gold continues to play a vital role in investment portfolios, valued for its stability and its capacity to hedge against various financial risks.

Gold’s spectacular run in 2023–2024 has spurred investor interest. The term “gold investment” refers to purchasing gold in order to generate returns or preserve wealth. There are several traditional ways to invest in gold.

 provides access not only to cryptocurrencies and forex, but also to contracts for difference (CFDs). Following are the exceptional benefits offered by MT5 to trade gold’s price via the 

Investing in gold offers several compelling advantages, making it a strategic choice for many investors. Here are some key reasons to consider:

Gold prices are influenced by a complex mix of factors. Understanding these determinants can help investors make informed decisions.

The fundamental factor affecting gold prices is the balance of supply and demand. On the supply side, mining production is crucial, as the amount of gold mined each year impacts overall supply. Major gold-producing countries include China, Australia and Russia. A decrease in mining output can lead to higher prices. Additionally, gold can be recycled from old jewelry and other products, thus contributing to supply. Central banks also hold significant gold reserves, and their buying or selling activities can influence market supply.

On the demand side, jewelry represents a significant portion of gold consumption, especially in countries like India and China, where gold has cultural importance. Investment demand typically rises during economic uncertainty as investors seek safety in gold. Some industries also use gold for electronics and medical applications, although this industrial demand is less significant than that of jewelry or investment demand.

Gold prices are sensitive to various economic indicators that reflect the health of the economy. Rising inflation rates generally lead to higher gold prices as investors look to preserve their wealth. Conversely, lower interest rates reduce the opportunity cost of holding gold, making it a more attractive store of wealth. The strength of the U.S. dollar also plays a crucial role in gold’s price. A weaker U.S. dollar makes gold cheaper for foreign investors, often increasing demand.

 has indicated a complex relationship between gold and inflation, ultimately indicating that gold isn’t on average a reliable hedge against inflation. While gold's recent price surge has spurred interest in it as an inflation hedge, empirical evidence reveals no consistent correlation between gold prices and inflation rates over time. Analysis shows that gold doesn’t move predictably with inflation, as demonstrated through scatter plots of inflation data against gold prices from 1979 through 2024.

Additionally, research examining underlying inflation and economic conditions finds that gold doesn’t respond positively to persistent inflation caused by excess demand. Results suggest that, while there may be periods when gold acts as an effective hedge, these instances are unstable and not dependable. The article concludes that while gold can serve as a diversifier in investment portfolios, it shouldn’t be viewed as a guaranteed inflation hedge, further cautioning against blanket statements regarding its role in portfolio construction.

Geopolitical events can also cause fluctuations in gold prices. Political stability is vital, and uncertainty surrounding elections, government policies or conflicts can drive investors toward gold as a safe haven. Global conflicts, such as the Russia-Ukraine and Israel-Hamas wars, can further heighten demand for gold, pushing prices up.

Market psychology significantly impacts gold prices. During periods of fear such as economic crises, demand for gold typically increases. In contrast, during bullish markets, investors may opt for riskier assets instead of gold. Technical analysis also plays a role, as traders analyze chart patterns and indicators to predict price movements.

Central banks are key players in the gold market. Their policies regarding gold reserves can significantly influence gold prices. Central banks hold substantial gold reserves, and their decisions to buy or sell can affect market dynamics. Additionally, their monetary policies — such as interest rate adjustments and quantitative easing —can have an impact on inflation and currency strength, indirectly affecting gold prices.

Speculative trading can lead to significant price fluctuations in the gold market. Futures and options markets allow traders to speculate on future gold prices, creating volatility that can influence current prices. The growth of gold-backed ETFs and increased institutional investment can also affect gold’s demand and price trends.

In conclusion, the enduring allure of gold as an investment is rooted in its rich history and intrinsic value, making it a reliable asset for preserving wealth and providing a hedge against economic uncertainties. With the launch of gold trading on Bybit MetaTrader 5, investors now have unprecedented access to leverage, low spreads and a diverse range of financial instruments. Bybit’s platform empowers traders to capitalize on gold’s potential with features such as 500x leverage and exceptional liquidity, ensuring efficient trade execution. 

As the demand for gold continues to grow amid geopolitical tensions and economic fluctuations, now is the perfect time to consider incorporating gold into your investment strategy. Embrace the opportunity to trade gold on Bybit MT5 and secure your financial future with a time-honored asset that has stood the test of time. Start your trading journey today and harness the power of gold!

Understanding Gold Investment and Price Determinants

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Gold as a Safe Haven: Navigating Economic Uncertainty With Bybit’s MT5

Bybit Savings is an investment product on Bybit Earn that offers both flexible and fixed product terms with competitive and guaranteed APRs.

Demand for Passive Income Surge In Crypto

The demand for safe and reliable passive income in the crypto space is rising due to the following:

As the market matures, the search for dependable passive income options will likely continue to grow. 

 emerges as a solution for users to obtain passive income easily while sailing through market volatility.

Countries like Japan continue to experience low interest rates as compared to others. Fixed deposits in yen yield only 0.25%, prompting investors to seek higher returns to combat inflation.

 is an investment product on Bybit Earn that offers both flexible and fixed product terms with competitive and guaranteed APRs. The product supports BTC, ETH, USDT and other popular coins. 

Users can choose fixed-rate products with Bybit Savings, further reducing their exposure to interest rate volatilities. 

Compared to the 0.25% interest rate offered in the Japanese yen (central bank rates), Bybit Savings offers a much higher APR with greater stability.

You can choose from approximately 170 tokens. Stake your tokens, select either a flexible or fixed term (depending upon availability) and start earning daily passive income. 

For all details, please refer to our detailed guide 

Why Choose Bybit Savings for Stable Revenue?

How Does Bybit Savings Compare to Bank Deposits or Money Market Funds?

Apart from the benefits we’ll highlight below, the key difference is that with Bybit Savings you can 

 your favorite token while earning stable revenue.

Other benefits offered by Bybit Savings are as follows:

Comparison With Other Crypto Investment Strategies

Compared to other crypto investment strategies, such as trading or investing in high-risk tokens, Bybit Savings provides a more stable and reliable way to earn passive income. 

While trading can yield high returns, it also carries risks and requires active management. Bybit Savings, on the other hand, allows users to earn passive income with minimal effort, making it suitable for both novice and experienced investors looking for a safe way to grow their assets in the crypto space. Overall, Bybit Savings stands out as a compelling alternative for those seeking higher interest rates and a stable, low-risk investment strategy in the evolving cryptocurrency market.

Step 1: Navigate to the Bybit Savings Page

Visit the Bybit Savings page by clicking on 

Explore the available plans based on Coin, Staking Period, APR and Term, and select the one you would like to purchase. Then, click on 

Enter your investment amount, and make sure you acknowledge all the parameters you’ve chosen. Then, click on 

: For Fixed Savings, please note that the plan you’ve purchased can't be unstaked or early redeemed until it expires.

Maximizing Your Revenue With Bybit Savings

Reinvesting Your Earnings for Compounding Interest

Reinvesting your earnings is a powerful strategy that leverages compounding interest. When you reinvest the interest you earn, your principal amount increases, leading to greater returns over time. This exponential growth can significantly enhance your portfolio’s overall value. 

In the context of Bybit Savings, where interest rates can be considerably higher than those offered by traditional banks, the impact of compounding becomes even more pronounced. With Bybit Savings, you can choose to 

 the interest for those plans with flexible terms, and compound the return you’ll receive when you unstake those positions.

 is a feature that allows you to automatically invest your idle assets into Flexible Savings products on Bybit. When activated, your specified idle assets will be invested into Bybit Flexible Savings daily at 10AM UTC. Once staked, these assets function similarly to Flexible Savings, enabling you to earn yields while retaining the flexibility to redeem your assets whenever you need to. Following is a 

Diversifying Your Portfolio Within Bybit Savings for Risk Management

Diversification is a key principle in risk management, and Bybit Savings provides various options to achieve it. By spreading your investments across different savings products within the platform, you can mitigate risk and optimize returns.

For example, you might allocate a portion of your assets to Fixed Savings for more predictable returns while placing another portion in Flexible Savings to capture higher rates when market conditions are favorable. This diversified approach allows you to balance the potential for higher gains with the security of more stable returns, ultimately enhancing your overall financial resilience.

Timing Fixed Savings Periods to Match Market Conditions

Timing your fixed savings periods can be crucial to maximizing returns. By strategically choosing when to lock in your funds based on market conditions, you can capitalize on periods of higher interest rates.

For instance, if you anticipate a rise in interest rates due to market trends, locking in your funds for a fixed period can yield more significant returns. Conversely, if the market’s interest rates appear to be declining, you might opt for shorter fixed terms or flexible savings options, allowing you to adapt quickly to changing conditions. This proactive approach can help you optimize your earnings and manage risk effectively.

How Flexible Savings Allows Easy Withdrawal Without Locking up Your Funds

One of the standout features of Bybit Savings is the flexibility it offers. Unlike traditional fixed savings accounts that require you to lock up your funds for extended periods, Bybit’s Flexible Savings allows you to withdraw your assets easily without penalties.

You can invest confidently with Bybit Savings, since Bybit offers 

In addition to Bybit's security measures, users can take several steps to enhance the protection of their assets:

Bybit Savings offers a compelling solution for investors seeking reliable and higher returns in the cryptocurrency space. With features like competitive and guaranteed APRs, options for flexible and fixed terms and the opportunity to reinvest earnings for compounding interest, users can enjoy a stable and low-risk passive income stream. Furthermore, the platform’s top-notch security measures and user-friendly interface make it accessible for both novice and experienced investors.

As the demand for passive income continues to surge in the crypto market, now is the perfect time to explore Bybit Savings. By taking advantage of this innovative investment product, you can harness the potential of your idle assets and achieve your financial goals with confidence. Start your 

 journey today — and set yourself on the path to financial growth!

1. What is Bybit Savings, and how does it work?

Bybit Savings is a crypto-based savings program that allows users to earn interest on their cryptocurrency holdings. Users can choose between flexible and fixed-term savings, where flexible options allow easy withdrawal, and fixed options offer higher returns for locking in funds.

2. What are the differences between flexible and fixed savings?

Flexible savings allow you to withdraw your funds anytime, offering lower interest rates. Fixed savings, on the other hand, lock your funds for a set period in exchange for higher interest rates, providing more lucrative returns.

3. How can I start earning with Bybit Savings?

To start earning, create a Bybit account, deposit supported cryptocurrencies, navigate to the Savings section, and choose between flexible or fixed-term savings. Deposit your funds, and you’ll start accruing interest.

Yes, Bybit offers top-tier security measures, including two-factor authentication (2FA), cold storage of assets, and risk management protocols. However, like any crypto investment, users should apply additional security measures on their end.

5. How much can I earn with Bybit Savings?

Earnings depend on the type of savings you choose (flexible vs. fixed), the cryptocurrency you're saving, and the current interest rates. Fixed savings typically offer higher rates, but the earnings can grow significantly through reinvestment and compounding over time.

Yes, if you choose flexible savings. For fixed-term savings, your funds will be locked for the duration of the savings period, and early withdrawal may not be possible or could result in penalties.

7. How is Bybit Savings different from traditional savings accounts?

Bybit Savings offers much higher interest rates than traditional savings accounts due to the volatility and nature of cryptocurrency markets. However, it also comes with a different risk profile as it's tied to digital assets.

Bybit Savings is considered a low-risk way to earn passive income, but since it involves cryptocurrencies, there are still market risks involved, such as fluctuations in the value of the underlying assets.

9. What cryptocurrencies are supported on Bybit Savings?

Bybit Savings typically supports popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and stablecoins such as USDT. The available coins may vary over time based on market demand.

10. How do I maximize my earnings with Bybit Savings?

Maximize earnings by reinvesting your interest for compounding returns, choosing higher-yield fixed savings options, and diversifying your savings across different cryptocurrencies to manage risk.

Beginner

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How to Utilize Bybit Savings for Safe and Stable Revenue Year by Year

Learn how this data can help us make more informed trades, we aim to equip traders with the tools they need to navigate the market effectively. 

 trading has been an important part of the broader crypto economy and the most important price discovery venue for cryptocurrency, especially for blue chips like 

. Professional traders and institutions have been using futures and options as part of their portfolios to hedge their positions, improve the execution of their strategies and potentially increase the profitability of their portfolios. 

Most participants in the cryptocurrency derivatives markets are professional traders (or as some may call them, 

) who are often at the forefront of crypto trading.. Observing the derivatives markets by constantly examining the relevant data could provide valuable insights into how these professional traders see the market.

In this article, we’ll provide a practical overview of derivatives trading data and explain how an everyday trader can extract actionable information from this data. By discussing how this data can help us make more informed trades, we aim to equip traders with the tools they need to navigate the market effectively. 

Open interest (OI) is one of the most common metrics in crypto derivatives trading. It refers to the number of outstanding unsettled (opened) contracts — whether perpetual, futures or options — that market participants hold at any given time.

Figure 1: BTCUSDT Perpetual open interest on Bybit

OI is essential because it essentially tracks the number of active market participants and, to some extent, is able to reflect the level of willingness of these professional traders to make trades at a specific time. 

 OI on Bybit. There was a clear spike in OI on September 19, 2024, when the United States Federal Reserve delivered its 50 bps rate cut. This surge in OI could mean traders have been more willing to bet on BTC prices after confirmation of the cut.

It’s important for general traders to know how active the market is. If the market is active, it could give asset prices stronger momentum. In contrast, a less active market with a continuing lower OI could mean that traders are in a wait-and-see mode.

The long/short ratio is another derivatives trading indicator from which we can extract important information. It essentially gives you a glimpse of oversold sentiment among professional traders. As the name suggests, the long/short ratio expresses the net long and net short positions as percentages of all position holders within a specific period. 

Figure 2: Bybit’s BTCUSDT Perpetual daily long/short ratio.

Examining the changes in the long/short ratio could also give general traders more confidence to spot trends. For example, in early September 2024, BTC prices saw noticeable fluctuations, from around $64,000 in late August to near $52,000 in early September.

Figure 2 shows the daily long/short ratio of BTCUSDT on Bybit. During the sell-off, the long-short account ratio increased for three consecutive days and reached 2.9 on September 7, 2024, the highest level in a recent month.

Interestingly, as Figure 3 suggests, the price of BTC decreased during the highlighted period while the number of long accounts accumulated. This divergence could imply that derivatives traders have been gearing up for a potential trend reversal, thereby opening more long positions.

Let's look at the recent BTCUSDT perpetual long/short ratio. Figure 4 shows the ratio dropping from 1.71 on Sep 19, 2024 to 1.25 on September 20, one day after the Fed's rate cut. Despite the market seeming to react positively after the cut is delivered, the long/short ratio shows that short accounts have actually increased. 

This increase could be interpreted as traders taking a relatively conservative stance, choosing not to increase their long positions and to hedge with additional short positions as BTC’s price increases. It would be instructive to look at readings for the next few days to reach a clear conclusion. 

Figure 4: Bybit’s BTCUSDT Perpetual daily long/short ratio

It's worth noting that the long/short ratio can also be categorized by trader profile, such as the top 100 largest position holders. It can also be viewed under a different time frame, such as one hour or 30 minutes. Each of these parameters may provide different information. We highly recommend users reference multiple data points from different categories to get a more complete picture. 

. We also recommend the following reading:

Options have been one of the most favorite trading products for professionals, especially institutional traders. The flexibility and composability of options enable traders to use complex position setups and strategies. Looking into options trading data may give us a peek at how these professional participants have been setting up their trades.

Understanding OI by Expiration & Strike Price

 in options refers to the number of opened contracts within a specific time frame. Options contracts also have many more parameters than perpetual contracts, and open interest alone can be filtered by types of options, expiration dates, strike prices and much more. Let's take a look at the below examples.

Figure 5a: BTC call options OI by expiration.

Figure 5b: BTC put options OI by expiration.

Figures 5a and 5b (above) show the OI of BTC call and put options by expiration dates. In September 2024, most of the OI, both call and put, was on the contract with a Sep 27, 2024 expiration. Traders seem to have been betting on where BTC will go by the end of the month.

Now, let's look at the strike prices among the OI with the Sep 27, 2024 expiration date. Figure 6a suggests that most of the OI for BTC calls was at $60,000, while Figure 6b indicates that the $40,000 put has the most OI. 

This gives us a price range as a reference, which could mean that options traders who are betting on BTC prices to rise by the end of the month seem to believe that by the expiration date (September 27), BTC will have a chance to hit $60,000 or above. 

In addition, traders have been using relatively 

 (OTM) and less expensive put options to protect their long positions. This could explain why $40,000 has most of the OI.

Figure 6a: BTC call options OI by strike price.

Figure 6b: BTC put options OI by strike price

So, how can this information be interpreted? At the time of this writing, BTC was trading at around $62,000. A $60,000 call option is in-the-money; if someone has a stronger bias toward a positive price action in the short or medium term, they would certainly buy in BTC calls with high strike prices. If there's a noticeable shift of the OI toward high strike prices' call options, that could mean that the positive sentiment of the post-rate cut could still be somewhat sustaining. Otherwise, it could be interpreted as a conservative setup.

To sum up, based on the above-mentioned data, BTC derivatives traders seem to have remained somewhat bullish after the Fed’s rate cut. However, it seems that most participants were cautiously optimistic, without over-leveraging, and perhaps wanted to see more confirmation of a trend reversal before making additional trades.

 page offers comprehensive information on perpetual, futures and options trading data. During 

, the Bybit Learn team will produce articles and analyses based on the contract data to provide additional insight so that users can make more informed trades.

In some ways, exploring derivatives data is similar to walking in the dark: perhaps you’ll be able to see the road just in front of you, but you certainly won't see too far. It’s also like a puzzle in that each piece of data can give you a little information, but you certainly can't see the complete picture with just one piece. Besides, there are many ways to interpret this data, and everyone may have a different interpretation. We encourage users to study derivatives trading in general, and to become familiar with this data.

While learning about derivatives trading (and using data) can be a powerful approach, it also has limitations, and is usually more applicable to blue chip cryptocurrencies.

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Learn From Smart Money: Observing Market Sentiment From Derivatives Data

Bybit MetaTrader 5 offers a new way to trade traditional assets, providing added value to your stablecoin.Why using Bybit MetaTrader 5 to trade traditional assets could bring new meaning to your stablecoin.

The crypto landscape has changed dramatically in recent years, as have the broader market structure and dynamics. TradFi and institutional liquidity have been playing an increasingly important role in the crypto space. At the same time, crypto trading has become more macro and sophisticated, and the demand for building crypto plus traditional asset trading strategies has been growing among crypto native traders. Although executing these strategies efficiently may not be as easy as many thought, things are about to change.

Bridging Two Worlds: Crypto and Traditional Assets

Crypto trading and investment have never been as mainstream as they are now. Just two years ago, it would have been hard to imagine that institutional investors would have any interest in crypto at all. Now, despite the recent market volatility, crypto is one of the most discussed topics among traditional investors.

 that 94% of institutional investors surveyed believe in the long-term value of blockchain technology and digital assets, with 55% planning to increase their allocations by the end of 2025. Meanwhile, 

 maturing market and custody infrastructure are the primary reasons institutions embrace crypto investment, signaling growing confidence in diversifying into crypto alongside traditional assets.

These structural changes in the crypto market have also increased the correlation between crypto and traditional assets. Hence, crypto traders' demand for constructing cross-asset trading strategies is also growing, especially in a market where macro factors have become increasingly influential and uncertainties are in play.

Currently, the capital infrastructure works almost like a one-way street. It's easy for liquidity on the traditional side to gain exposure to crypto, but it remains difficult and exhausting for crypto liquidity to gain traditional asset exposure in a crypto-native form. The call for an interconnected ecosystem that reflects the true value of the future of finance has never been greater.

As a web3 advocate, we’ve witnessed blockchain’s transformation of the financial industry and the way people make trades. However, we’re still far from achieving universal financial inclusivity, with frictionless and cost-efficient cross-asset trading. The crypto industry has been pushing forward to achieve that goal, one step at a time.

 trading platform could be a tipping point. The platform allows crypto natives to use USDT to trade traditional assets, such as commodities, forex and major indices, in the format of CFDs. This innovation not only opens doors for native crypto traders to build a much more diversified portfolio and deploy sophisticated cross-asset trading strategies, but also significantly contributes to fostering financial inclusivity. Most importantly, it enables users to do all this in a crypto-native way.

Building on the success of MT4, MT5 introduces improved features and an enhanced trading experience, based on traders' feedback, such as additional trading pairs, lower stop-out levels and higher leverage. These improvements are designed to provide traders with a more convenient and efficient experience. Learn more about the 

Looking at the bigger picture, MT5 could also mean expanding the utility of USDT and, potentially, other stablecoins, further propelling the mass adoption of crypto. MT5 provides stablecoin-based settlement, not just for crypto pairs but also for traditional assets. 

This means that traders can use stablecoins to trade a wide range of assets, providing a level of flexibility and convenience that was previously unavailable. This could be the first time that a major 

 is able to provide such frictionless cross-asset trading using stablecoins, making it not just a one-way street but a trading superhighway.

Mass adoption has been one of the holy grails in crypto. Web3 startups, from new blockchains to DApps, have been pushing the mass adoption of crypto forward in various ways. As the 

 to bridge cryptocurrency and the real world, we’re committed to building infrastructure that connects the two. 

Bybit is proud to introduce MetaTrader 5, a top-tier trading platform with the transformative potential to integrate crypto with traditional assets, and to use cryptocurrency to widen the democratization of access to various asset classes. Our platform has the potential to revolutionize the industry, making cross-asset trading more accessible and efficient than ever before. As we continue our commitment to empowering users with innovations and top-of-the-class products, we believe that MT5 is a significant step toward the mass adoption of crypto and the realization of a more inclusive and interconnected financial system.

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Unlocking Stablecoin Potential: Bybit's MT5 Merges Crypto with Traditional Assets

Please check out this series of articles to prepare you for yen volatility.

In the current economic climate, with Japanese interest rates remaining low and the yen experiencing prolonged depreciation against the U.S. dollar, many investors are seeking more effective asset management strategies to combat inflation and currency weakness. In this article, we explore how utilizing Bybit’s USDT Savings plan can provide a solution, offering high yields and other benefits that can help shield investors from the impacts of yen depreciation.

The Japanese yen has continued to depreciate, reaching a 34-year low in 2024. This persistent weakening can be largely attributed to Japan’s monetary policy, which has focused on prolonged quantitative easing and maintaining low interest rates. 

Unlike Japan, other major economies such as the United States’ have increased rates, making their yields more attractive and contributing to the yen’s decline. Additionally, geopolitical tensions have further undermined the yen, leading to higher prices for imported goods, as well as an increased cost of living in Japan.

To examine the details, let's look at the chart below, which illustrates the USD/JPY exchange rate. We can see a clear trend of yen depreciation in recent years as the exchange rate climbed. Since 2020, the USD/JPY exchange rate chart has demonstrated a notable depreciation of the Japanese yen against the U.S. dollar, with the result that more yen are needed to purchase a single U.S. dollar as the exchange rate climbs. This depreciation can be attributed to a combination of Japan's continued loose monetary policy and the maintenance of low interest rates to support the domestic economy, in stark contrast to aggressive rate hikes by other major central banks, such as the U.S. Federal Reserve. The significant interest rate differential has encouraged carry trades, further pressuring the yen.

Looking at the chart of the yield spread between the U.S. and Japanese 10-year government bonds, we can see that this spread has been increasing, indicating that U.S. bonds are yielding more relative to Japanese bonds and reflecting the higher interest rates in the U.S. as compared to those in Japan. These higher rates in the U.S. make dollar-denominated assets more attractive to investors, driving demand for U.S. dollars as investors sell yen to purchase dollar-denominated assets — also leading to capital inflows into the U.S. from Japan and contributing to the yen's depreciation.

Given these circumstances, it’s crucial for investors to explore products and strategies that can provide stability and growth during economic downturns. Some common strategies include:

However, for some retail investors — who might not be equipped with sufficiently advanced investment knowledge to execute the above methods, or just want to find a simple, yet effective strategy to use — Bybit’s products could offer a solution.

As a leading global cryptocurrency exchange, Bybit offers a compelling solution with its diverse range of products. The Bybit USDT Saving plan, in particular, is designed to cater to users seeking effective ways to combat low yields and currency depreciation, providing a robust option for enhancing asset growth amidst challenging economic conditions.

Introduced in 2022, Bybit's USDT Savings plan is a yield product supported by Bybit Loan, which has quickly gained popularity for its flexibility and high returns. Current data shows that the APR for Bybit's USDT Savings can range between 6% and 8%. In stark contrast, the typical annual yield from Japanese bank deposits remains below 0.1%. 

To illustrate the advantages of Bybit's plan, the following figure demonstrates the yield after three years when 1 million yen is deposited into a Japanese bank and into Bybit's USDT Savings account, respectively.

When comparing the returns from Japanese bank deposits and Bybit's USDT Savings over a three-year period, the difference in potential earnings is remarkable. Japanese banks offer an annual interest rate of 0.1%, resulting in an interest income of approximately 3,003 yen after three years. In contrast, Bybit's USDT Savings plan, with a 6% annual interest rate compounded daily, can generate about 191,016 yen in the same time frame. This means that Bybit’s USDT Savings yield is about 

 that for a typical Japanese bank account, clearly showcasing the superior potential for growth with Bybit's offerings.

It's important to note that since Bybit's USDT Savings plan is backed by Bybit Loan on the platform, the APR may vary with market dynamics. Consequently, there may be periods when the APR adjusts to between 3% and 5%. Despite this variability, these rates are still substantially higher than the 0.1% typically offered by banks. Additionally, the plan includes other benefits that add value beyond the higher interest rates.

Getting Started with Bybit’s Saving Plan

Amid the backdrop of a weakening yen and persistently low interest rates, Bybit's USDT Savings plan offers users high yields and protection against currency depreciation. Beyond its high returns, the plan also provides users with the flexibility to manage their assets effectively, capitalizing on the dynamic nature of cryptocurrencies. Consequently, Bybit's USDT Savings plan has emerged as an attractive option within the current economic landscape. 

In our next article, we’ll delve into ways to leverage Bybit’s other asset management tools to optimize your investment portfolio. Stay tuned for more insights!

: Investing in cryptocurrencies involves a substantial risk of loss and isn’t suitable for every investor. Prior to making any investment decisions, please ensure you fully understand the risks involved, and seek independent advice if necessary. Our customer support team is available to assist you with any inquiries.

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How to Use Bybit to Navigate Through Yen Depreciation and Low Interest Rates

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