Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Sep 24, 2021

$6 Billion of Bitcoin Options Expire Tomorrow – How Will it Affect BTC Price?

$6 Billion of Bitcoin Options Expire Tomorrow – How Will it Affect BTC Price?

After another week of bitcoin price volatility, including a new all-time high, a new record of options expiring on March 26 could play a key role in price action and the continuation of this volatility moving into the coming days.

Options are a contract for the right to purchase or sell an asset at a specific price. According to data analytics company Bybt, there are over 100,000 BTC — the equivalent of $5,574,000,000 (given the bitcoin price of $55,740 at the time of this writing) — of options set to expire this Friday, March 26, across numerous major exchanges. This will make for an interesting trading session leading into the weekend.

This level of options expiring will set a new record, breaking the $4 billion mark set in late January of this year. The bitcoin price on January 31 closed at just over $33,000, meaning that bitcoin has appreciated almost 100 percent since the previous record of options expired.

Options-open interest for bitcoin has soared this year, more than doubling since the end of last year, up from about $5 billion to now nearing $14 billion. In options, there are calls (bets that price will rise) and there are puts (bets that price will fall). In aggregate, the market is leaning bullish, with a current call-to-put ratio at 1.11. Anything above one is bullish, meaning at a ratio of 1.18, the market is leaning 11 percent in favor of more upside to come.

Put options seem to be targeting the $40,000 range and the $47,500 range, while call options expiring on Friday are eyeing the $60,000 range.

If the past is any indication of what is to come, this should entail some short-term volatility, but ultimately more upside in the coming weeks following expiry.

Source: Fintechs.fi

Comments

SAMIR SARDANA 58 days ago
People say Y did Salvador go for BTC ?

If Salvadoreans have been stashing USD as a risk hedge – it is not good for the state – as this stash is in cash – and pressures the local exchange and has no productive use

With BTC and the circulation of USD,if the USD cash starts circulating,it is good for the nation and the banks, and some of the USD will find its way into the banks,and be used for economic activity.

People will take out their hidden USD,buy BTC and SPEND THE MONEY or SPEND THE APPRECIATION IN THE BTC OR THE PROFIT – and that is a gain for the nation.If the banks sell the BTC,then the PHYSICAL DOLLARS, WILL MOVE INTO THE BANK – AND THE NATION CAN USE THE USD,NOT TAKE IMF LOANS,AND THE PEOPLE WILL HAVE DIGITAL DOLLARS WHICH CANNOT BE STOLEN,BURNT,TORN,COUNTERFEITED OR DAMAGED.

Boosting demand for a DIGITAL DOLLAR (BTC),is better than the PHYSICAL USD.

Money laundering cannot happen with the BTC,as the person WHO SELLS THE BTC TO THE STATE,AND RECEIVES USD IN HIS BANK – will have a name and identity,and will need to explain the proceeds,as the date of his acquisition of the BTC,is known.

Even if such a fool exists,he would be trapped by the state,with the BTC.

The Govtt of Salvador,should commit that every Salavadorean,can surrender his BTC to the bank,and get USD,at any time. dindooohindoo

Newsletter

Related Articles

Hong Kong News
×