The last days have been witness to the failed attempt of Bitcoin to break through the resistance zone of $48,000. Nevertheless, the price of the cryptocurrency managed to remain flat even as the Minneapolis Federal Reserve Chairman slammed the industry for being nothing more than fraudulent, overhyped, and noisy. This was stated in his appearance at the Pacific NorthWest Economic Region Annual Summit which took place on the 17th of August. Also, the Chairman, Neel Kashkari, didn’t forget to target BTC specifically when he mentioned that the only thing cryptocurrencies were used for was funding illicit activities.
Bulls Seem Confident In The $44,000 Support Of Bitcoin
Despite this imminent pullback, most of the investors of Bitcoin should be more than glad that the support of $44,000 withstood. The Federal Reserve also signaling its intention of unwinding around $120 billion monthly purchases of Treasury, which would be coupled with securities that were mortgage-backed. With far less stimulus to go out and support the sector, investors of BTC will be more at risk-averse, something that could very well lead to a retracement in the price of the cryptocurrency. Keeping that in mind, traders shouldn’t really be worrying about the $600 million BTC options expiry as the markets will definitely hold during the negative news- which can also be seen as bullish.
As of now, the ratio of call-to-put for Bitcoin stands at 1.43, with the cryptocurrency favoring the call options of neutral-to-bullish. This data is vastly reflective of the 7,838 call options of the cryptocurrency which are stacked against the 5,465 put options. Currency, there is barely any time for the expiry of the cryptocurrency, along with a slim chance that the call option of $50,000 comes up to be of any use. This implies that even if the cryptocurrency trades at a sum of $49,900 on the 20th of August, this will be meaningless.
An expiry price of Bitcoin below $48,000 will also reduce the figure from $190 million to $138 million.