Bybit launches Smart Leverage ahead of Bitcoin Halving

Smart Leverage is a structured product that is not principal-protected, targeting traders looking to profit from significant price movements, like V-shape recoveries.

Bybit has launched “Smart Leverage,” a new product under its Bybit Earn portfolio which enables users to better leverage market opportunities, especially with the anticipated Bitcoin Halving event on the horizon.

Smart Leverage offers traders the ability to take highly leveraged positions, up to 200 times, with the unique feature of full liquidation protection until the settlement date. The product is designed for trading short-term volatility in Bitcoin (BTC) and Ether (ETH), safeguarding users from sudden market fluctuations that could otherwise close their positions prematurely.

Up to 200:1 leverage for short-term volatility like V-shape recoveries

This structured product is not principal-protected, targeting traders looking to profit from significant price movements, like V-shape recoveries. It allows for profits to be taken at any point within the subscription period, offering a flexible approach to trading market volatility and the potential for amplified returns.

Key features of Smart Leverage include:

  • No Liquidations Before Expiration: Traders can engage in high-leverage trading without the fear of being liquidated before the product’s expiration.
  • Take Profit Anytime: Users have the flexibility to lock in gains whenever they choose during the subscription period, providing an opportunity to capitalize on market movements.
  • Zero Fees: The product comes with no fees, meaning all returns are fully realized by the trader without any deductions.

Ben Zhou, co-founder and CEO of Bybit, said: “We are thrilled to unveil Smart Leverage, a one-of-a-kind offering that solidifies Bybit’s position as a pioneer in the industry. Our lightning-fast matching engine and sleek UI make us home for traders the world over and we are continually offering world-class products to better serve their needs.”

Founded in 2018, the cryptocurrency exchange serves over 25 million users and offers a capable matching engine, round-the-clock customer service, and extensive multilingual community support.

Next Bitcoin halving reduces mining reward from 6.25 BTC to 3.125 BTC

The next Bitcoin halving is projected to occur in April 2024, reducing the mining reward from the current 6.25 bitcoins per block to 3.125 bitcoins. This event is part of the Bitcoin protocol designed to reduce the rate at which new bitcoins are generated by the network, thus ensuring the cryptocurrency’s supply remains finite and inflation is kept under control. Historically, Bitcoin halvings have been associated with significant price movements, both in anticipation of and following the event.

Looking at past halving events, there has been a noticeable trend where the price of Bitcoin increased significantly after each halving. For instance, after the first halving in 2012, the price rose from about $12 to approximately $1,170.

Similarly, subsequent halvings in 2016 and 2020 were followed by substantial price rallies, with prices reaching around $19,400 and $67,450, respectively. These patterns suggest that halving events can significantly impact Bitcoin’s price due to the reduced supply of new bitcoins entering the market, thus potentially increasing demand.