The Bitcoin market is on today’s date, with the $ 6 billion options contracts expiring.
The expiration of the $ 6 billion bitcoin options contracts is a new record in the history of Bitcoin options contracts, which are due to expire on Friday, March 26.
The impact of these contracts on the bitcoin market, could add increased selling pressure in the short term and trigger additional price volatility.
According to the contracts and derivatives data platform “Bybt”, options contracts are set to expire by more than $ 5.5 billion today, and previous expirations have affected the spot markets.
Options contracts are somewhat similar to futures contracts, but derivative and options contracts give traders the right but not the obligation to buy or sell an asset at a predetermined price.
Analysts are cautiously anticipating Bitcoin’s move:
The last Friday of every month is important for bitcoin prices, as the price of bitcoin has dropped on average by 2% in the week preceding the last Friday in the past three months, according to “The Defiant”.
The same source added that the weeks following the last Friday of each month Bitcoin is recording a 12% gain on average.
Data from Bybt indicates that 90% of open interest comes through Deribit.
Open interest refers to the total number of outstanding derivative contracts that have not been settled.
“Max pain” is the price at which option sellers will owe the lowest amount of money to option purchasers.
The maximum “Max pain” is more than $ 10,000 from the current price of Bitcoin, in an indication that there could be selling pressure on Friday.
Analytics platform Glassnode founders added that April price expectations are high.
The analyst and investor in the crypto industry, “Ran Neuner”, expects market fluctuations and short pressure, which is what actually represents a rapid increase in the price of Bitcoin due to the increase in short selling instead of other fundamentals, and stated by saying:
$ 6 billion in futures contracts expire today and Bitcoin held up!
Sellers weren’t able to break $ 50k and thus ran out of short money!
I expect a short afternoon in the next 4 days! I also expect a massive replacement infusion.
At the time of publication of this article, the price of Bitcoin is estimated at $ 52,900, according to “Coingecko”.
Bitcoin price fell to the support and daily lows at $ 50,500, which triggered another bullish move.
The cryptocurrency market has been correcting strongly over the past week, with losses accelerating yesterday, Thursday, March 25th.
As trading begins in Europe and the US, all eyes will be on the expiration of the big options and Bitcoin’s next move.