Here’s what cryptocurrency investors should expect
The cryptocurrency market may experience greater volatility after greater volatility Bitcoin (encryption: Bitcoin) Options expire on date Friday.
What happened: According to a leading cryptocurrency derivatives exchange DearbitBitcoin options contracts, with a notional value of approximately $14.38 billion, expired at 3:00 a.m. ET.
This number represents 70% of the total open interest for BTC options across the various expiration dates.
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Options are derivatives that give the buyer of a contract the right to buy or sell the underlying asset at a predetermined price and date. Usually, high open interest in options trading indicates that there are many market participants and that new money is entering the market.
A call option gives the buyer the right to buy an asset, while a put option allows him to sell the asset at an agreed upon price. As of this writing, the buy/sell ratio was 0.61, indicating a bullish sentiment as more traders were betting on price increases.
The next most important date for traders is set for January 31, when options worth approximately $5.48 billion will expire.
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Why does it matter?: I spoke with Benzinga previously, Derebit CEO Luke Strygers king It was marked at $84,000 As the “maximum pain” level for Bitcoin, indicating the possibility of Bitcoin falling to this level.
The maximum pain price is the price at which most option holders will experience the greatest financial loss when the option expires.
In addition, Sean McAnultyTrading Manager at a liquidity provider Arbelos MarketsBloomberg quoted him as saying that the market may become volatile after expiration.
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