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Bitcoin is not yet at $65,000 per coin, despite hopes. The flagship cryptocurrency has been stagnating between $63,000 and $64,000 since the Fed’s announcement. However, the impending expiration of options, which represent no less than $8.1 billion, could shake things up. Between bullish sentiment and heightened volatility, investors are bracing for a lively weekend. The ratio of call and put options could well dictate the fate of Bitcoin in the short term.
Bitcoin and its possibilities: who will have the last word?
Bitcoin options, closely linked to the US election,worth a whopping $8.1 billionthey are due to expire this Friday. This type of term often shakes up the market. Actually,balance between calls and puts is a key indicator of where this cryptocurrency is headed.
Currently, the put/call ratio oscillates around 1.12a number that points to selling pressure. However, nothing is decided.
- $8.1 billion in in-play options;
- put/call ratio 1.12;
- Increased volatility is expected.
He saw the last option expiration of this amount, in March 2021 similar scenario : a pause followed by a bullish recovery. Optimists are betting that history may repeat itself, but watch out for bears who haven’t had the last word.
” Volatility is to be expected as investors prepare their moves “, emphasizes the expert.
The crypto-flagship in the eye of the storm
Bitcoin is not alone in this battle. The growth of reserves on crypto exchanges is indicative of this traders are anticipating the upcoming liquidation. For three weeks, foreign reserves and open interest continued to rise, which are the signals that suggest intensification of activity. These market indicators are often harbingers of major turbulence for the flagship cryptocurrency.
The crypto market could thus experience serious volatility. Investors have their eyes glued to emerging trends. THE trading volumes they also show that many are ready to react quickly to the slightest sign of a bearish correction.
In short, whether it’s a massive liquidation or bullish support, anything is still possible for Bitcoin (BTC) and the crypto market as a whole this week.
Also note that option expirations could weigh heavily on the market this week, with Bitcoin under pressure oscillating between euphoria and fear.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.