With respect to the latest news from the cryptocurrency industry, no one can really blame the bulls of Bitcoin for placing bets at a price of $20,000 and higher for the weekly options expiry of $600 Million on the 18th of November.
After all, it goes without saying that this level had necessarily provided a solid resistance since the 25th of October and held on to it for close to two weeks. However, the scenario at the base shifted quite abruptly on the 8th of November after a liquidity crisis halted most of the withdrawals on the exchange of FTX. This movement went on to surprise most of the traders and over the course of 48 hours, close to $290 million in leverage buyers were seemingly liquidated.
Despite Bitcoin’s Crash, the Market Has Been Holding Steady
The crash of Bitcoin didn’t stop the market from adjusting pretty quickly to the news, where it ranged from a sum of $15,800 to a sum of $17,800 for the last week. At this moment, the investors seem to be quite afraid that the contagion risks could deliberately force most of the other players to start selling their positions in cryptocurrency. FTX has been holding on to significant deposits from most of the key players in the industry- so the demise should mean that other participants have also faced substantial losses.
For example, BlockFi did hold on to a $400 million credit line with the FTX branch in the United States. On the 15th of November, SALT, a collateralized yield platform, went on to highlight significant losses from the collapse of FTX, and subsequently halted most withdrawals.
The options expiry on the 18th of November does seem to be quite relevant because the bears of Bitcoin can easily secure a profit of $120 million by suppressing BTC below a price of $16,500.