Bitcoin headed for Christmas volatility as 100K BTC options expire

Spread the love

The Bitcoin futures market has a major expiry date on Friday.

Roughly $2.3 billion worth of Bitcoin futures is set to expire on Christmas day, setting the stage for a volatile week in the cryptocurrency market.

In a Monday tweet, crypto data provider Skew reported that 102,200 Bitcoin (BTC) options will expire on Friday.

Options contracts allow holders to buy or sell Bitcoin at a specific price, which is known as the strike price. The Friday expiry has notable clusters around the $15,000 strike price and the $20,000 strike price, according to Skew.

BTC options expiry dates by Skew

The expiry date of Bitcoin options contracts is widely regarded as a volatile event for the flagship cryptocurrency because, as the expiry nears, holders adjust their contracts. Traders who are in profit may also decide to receive the payout and dump the cryptocurrency.

Friday BTC options expiry by strike price, according to Skew

Such events have been known to cause large fluctuations in Bitcoin’s value. Typically, the impact of a contract on BTC price becomes more apparent roughly one or two days before expiry.

RECOMMENDED READ:  Cellebrite Launches Crypto Tracer Solution to Track Illicit Transactions

Crypto derivatives trading has soared this year as more traders and institutional investors look for added Bitcoin exposure. Last week, crypto derivatives platform Deribit began offering Bitcoin futures with a $100,000 strike price expiring on Sept. 24, 2021. In other words, Bitcoin enthusiasts who think the cryptocurrency will reach a six-figure moonshot can now take that bet in the futures market.

Bitcoin is currently in the midst of a bull market that’s being fueled in part by institutional investors and large over-the-counter trades. Even with the anticipated futures volatility, there’s a good chance that Bitcoin will remain well supported by institutional demand and the rise of so-called illiquid wallets — i.e., addresses that have sent less than 25% of the BTC they’ve ever received. Chainanalysis believes illiquid wallets hold 77% of the 14.8 million mined BTC that hasn’t been lost.

 349 Interactions,  2 today

READ ALSO:
How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

The cryptocurrency market cap has surpassed $2 trillion, making it as valuable as Apple.

For the first time, the total market value of all cryptocurrencies exceeds $2 trillion. According to Goingecko numbers, the total Read more

Why crypto analyst Ben Armstrong says, ‘He Very Confident Bitcoin Will Reach $300K This Year.’

Recently, blockchain expert and influencer Ben Armstrong mentioned Bitcoin in a video posted to his highly popular YouTube channel “BitBoy Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Ethereum Price Movement Analysis for 4th April, 2021

Ethereum, the second-largest cryptocurrency, has entered a volatile zone, which could drive the digital asset's price even higher. In the Read more

Chainlink, DigiByte, Enjin Coin Price Movement Analysis for 4th April, 2021

Bitcoin faced some selling pressure just above the $59k mark, leading it to slip to $56,600. The majority of the Read more

Bitcoin fell by more than 4%, causing many other cryptocurrencies to plummet drastically.

The world's most expensive cryptocurrency fell 4.1 percent, bringing several other coins down with it, sending the economy into the Read more

Litecoin Price Movement Analysis for 3rd April, 2021

For the last few days, the cryptocurrency industry has been playing chase with the bulls and bears. The economy has Read more

Polkadot Price Movement Analysis for 3rd April, 2021

The ETH/BTC pair has stopped trending downward and has actually made gains in recent days, flashing a buy signal across Read more

Leave a Reply

Contact Us