The cryptocurrency market has been volatile recently, which is not surprising given what happened in November. BTC dropped below $6,000 after months of consolidation between $6,000 and $10,000. However, it is now trading at over $8,500 after a few weeks of recovery.
A series of expiries this weekend could be a major hindrance in the way of Bitcoin’s rally, which is currently tracking at $17,000. The options market is set to see a series of big expiries this weekend, with over $2 billion worth of contracts set to expire this Friday.
The move has been labeled “the biggest expiration risk ever” by one trader interviewed by CNBC due to its sheer size and potential impact on the overall Bitcoin price trend. The trader further explained that these large-scale movements can sometimes result in significant price swings which might take several days for traders to digest before any lasting impact can be seen on the market overall, if at all.
Bitcoin To See Positive Results Soon?
The current Bitcoin price surge has been attributed by many people to a squeeze in options traders who are being forced out of their short positions as the price continues to rocket upward. The main reason for this is that these traders were betting on a fall in the bitcoin price when they bought contracts, which means that if it doesn’t fall, they will lose money.
The squeeze has led to many theories about where BTC may go next, with some arguing that we could see a rise all the way up to $21k before Friday’s 510 million contract expiry, while others say we’ll see another bull run after that.
The options market is set to see a series of big expiries this weekend, with over $2 billion worth of contracts set to expire this Friday.
The largest bitcoin options expiry yet is set for Friday and more than $510 million worth of contracts are due to expire as traders look to lock in profits on bitcoin’s recent rally.