Many Bitcoin options are set to expire before the month ends. These contracts are worth almost billion dollars.
Bitcoin is one of the many cryptocurrencies in the world that made many achievements this October. Last week, Bitcoin broke its long time resistance of $12,000. Hence, Bitcoin rockets its price to over $13,000, which attracted the attention of investors globally.
Despite the coin’s uptrend performance, there are still speculations that the crypto price might drop before the end of the month. Based on the chart above, there are almost 60,000 Bitcoin options that will expire this week. These Bitcoin options are equivalent to almost $750 million notionally. As a result, Bitcoin’s price might decline.
On the other hand, Derebit, which holds the largest Bitcoin and Ethereum options contracts by volume, also supports the data given by Skew. In a published article, Derebit explained that there are about $57 million of options contracts that expire each day. It also said that there are $2 billion worth of Bitcoins options that are soon to expire. In this case, almost a billion options contracts will expire before the month ends.
Furthermore, Derebit also considers the incoming US election to determine the price of the crypto in the days to come. This also makes the group wonder, expressing that,
With over 7% of the expiry open interest fixated on the 13,000 strike, could any early unexpected US election news or movement in the partially correlated stock market trigger Bitcoin to cross the strike and trigger a run on volatility?
Regardless, Bitcoin is still one of the cryptos that already gain the trust of many investors. It also has proven its market stability many times in this period of market depression. In a report, Bitcoin is set to invite trillions of investment due to its outstanding performance lately.