A billion dollars in Bitcoin options expire soon

in #bitcoin3 years ago

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Summer will be hot for Bitcoin - Could it be the moment of calm before the storm? If Bitcoin (BTC) prices have been sleeping peacefully between $ 9,000 and $ 10,000 for several weeks, that could change very soon. In fact, as of this Friday, June 26, many option contracts on Bitcoin will expire ... Suspense!

The robust resistance of the $ 10,000 soon breaking through?

The option contracts give their subscribers the right to buy or sell an underlying asset such as Bitcoin - but not the obligation, hence the term "option". The beneficiary of the contract can exercise their option at a fixed price, and before a fixed date.

According to Skew, a crypto derivatives monitoring and analysis site, 114,700 Bitcoin option contracts will soon expire. Or just over a trillion dollars at current prices!


This large number of open contracts could cause an earthquake in the price of Bitcoin, giving it (finally) an upward or downward directionality.

Bitcoin to heaven or to a hole?

Of course, these option contracts could simply not be exercised. But that would mean losing the costs of taking out these contracts. But in the end, are these options more bullish or bearish? Well, things are pretty… mixed, shall we say!

In the chart below, we can see the amount of Bitcoin option contracts per exercise price (strike price) determined in advance. A large number of contracts (13,200) are located at the symbolic level of $ 10,000, which should already pull prices towards this resistance.

Then, there is a fairly well distributed number of contracts below and above current prices (around $ 9,200 at the time of writing). There is, however, a slightly more significant concentration of upward contracts, between $ 11,000 and $ 13,500.


It is difficult to determine what will happen tomorrow, but given the amount of money involved, it is very likely that this will have a significant impact on prices. And for you, which option seems to be the most likely for Bitcoin tomorrow: rather upward, downward, or will we still be stuck in this neutrality?