Beginning with Bitcoin 2020, its growth came to a sudden halt, with the price failing to stay above $ 10,000 per bitcoin.
The price of bitcoin, which has been around 30% so far, is persistently pouring in at around $ 9,400, as it briefly exceeded $ 10,000 earlier this month.
Now, bitcoin traders and investors have at their disposal more than 100,000 bitcoin options worth a total of $ 930 million that expire on June 26 – almost 70% of the total open interest in bitcoin.
The expiration date of bitcoin could trigger a sharp price volatility, with previous major expirations causing the market to “jump” quite aggressively and the size of the open bitcoin market growing lately.
Open interest in Bitcoin has climbed to $ 1.3 billion, twice as much as just a few months ago, according to bitcoin vendors and crypto-analytics Skew.
Deribit, the Panamanian derivatives exchange, accounts for 77% of the bitcoin options market, although regulated CME and LedgerX sites have fared well lately.
The gap between bull and bear options is currently fairly neutral, although most CME contracts are bitcoin at a higher price than the current price – 75% of CME contracts call bitcoin $ 11,000 and up.
In addition to the leak of bitcoin options coming on Friday, global stocks missed due to an increase in coronavirus infections across Europe, the US and China that weighed on investor confidence.
“The key thing to look out for in the next few weeks is the sale of shares associated with Covid-19,” Chris Thomas, head of digital assets at Swissquote Bank, told Coindesk.
“If markets react very negatively to increased Covid-19 cases, we may see more panic that could also reduce bitcoin.”
Meanwhile, despite growing interest in bitcoin options, most bitcoin buyers treat it as digital gold, preferring to keep bitcoin in the long run.
“Data shows that most bitcoin is held by those who treat it as digital gold: an asset that will be retained for the long term,” Chainalysis researchers wrote last week.
“Given that more and more people want to trade bitcoin, which is only scarcer after the recent halving, the bitcoin transition from an investment set to a trading bucket could become a crucial source of liquidity. However, this could only be expected to happen if the price of bitcoin rises to a level where long-term investors are willing to sell.