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On December 25th, 102,200 BTC contracts will expire in the Bitcoin futures market. Traditionally, volatility of the first cryptocurrency is observed at this time. We publish information about this according to the data of the resource of cryptanalysts Skew
BTC options make it possible to buy or sell coins at a specific value. At the end of December, a part of the options with the strike price of realization at the level of 15-20 thousand dollars is closed.
As the options approach the expiration date, bitcoin traditionally begins a period of little volatility. The point is that the owners of the futures are adjusting their contracts. Some people choose to make a profit by dumping cryptocurrency, which causes a sharp market saturation.
Usually, the price fluctuation of BTC is observed 1-2 days before the expiration of the contract. Given the increased demand for Bitcoin options this year, there may be increased price volatility in December 2020.
Note that the market is generally positive. In mid-December, Deribit launched futures with a sell price of $ 100,000. Bitcoin enthusiasts can take advantage of this offer by accepting this bet in the futures market.