The expiry of upcoming Bitcoin options can cause price fluctuations. In the past, we have already observed that when options on the most popular cryptocurrency expire, the market and price went up or down sharply.
And it is also worth to mention that the open market for interest in Bitcoin has recently grown significantly. It increased to USD 1.3 billion, which is twice as many as a few months ago.
Deribit, the Panama derivatives market, accounts for 77% of the Bitcoin options market. On the other hand, CME and LedgerX regulated markets have also gained popularity. You can see a trend in which users prefer to go towards regulated entities.
Which way?
The division into call and put options (increase and decrease) is currently quite neutral, although most CME contracts concern Bitcoin at a higher price than the current one - 75% of CME contracts assume a price of USD 11,000 or higher. Chris Thomas, head of Digital Assets at Swissquote Bank, comments on the current situation:
The key thing to watch over the next few weeks is the Covid-19 sale of shares. If the markets react very negatively to the increase in the number of Covid-19 cases, we can face more panic, which may also lower Bitcoin's quotes. We already dealt with such a situation in March this year.
A billion dollars in the game
In addition to the impact of coronavirsua and financial market movements, Bitcoin is also under pressure by the huge value of the options it currently has.
We are talking here about over 100,000 BTC, which at today's prices gives a value of over USD 1 billion!
The most popular cryptocurrency has never come under as much pressure from the financial market as it is now.
What does this mean for Bitcoin?
Absolutely nothing.
In May 2020, contracts worth 33000 BTC expired, did it cause any movements on the most popular cryptocurrency in the world?
The answer is no.
This is pure speculation and if nothing interesting happens, it will not have any impact on the cryptocurrency market.
