Bitcoin options market is growing, despite the depreciation below $ 9000
To date, 114,700 option contracts, whose face value is already above $ 1 billion, will expire tomorrow on the main derivatives exchanges - Deribit, CME, Bakkt, OKEx, LedgerX.
Bitcoin derivatives continue to be in high demand, despite the uncertainty prevailing in the spot market in the last couple of months. BTC options are approaching a record expiration of $ 1 billion this Friday, June 26th.
To date, 114,700 option contracts, the nominal value of which already exceeds $ 1 billion, will expire tomorrow on the main derivatives exchanges - Deribit, CME, Bakkt, OKEx, LedgerX.
Options are derivative contracts that give buyers the right, but not the obligation to buy or sell an underlying asset at a predetermined price before a certain date.
A call option gives you the right to buy, and a put option gives you the right to sell. Using options, traders can make bull or bear bets on contracts at different exchange rates (strikes), which expire in different months.
The expiration of an option may affect the direction of the market amid a process known as “fixing,” in which option traders try to move the spot price to avoid sudden losses.
Owners who benefit from higher prices for the underlying asset — sellers and call buyers — often take long positions in the spot market to raise prices before the expiration date. On the other hand, put buyers and call sellers who benefit from a fall in the underlying asset open short positions in the spot market to keep prices under pressure until they expire.
Such a "tug of war" often leads to the fact that prices are fixed at the level of strike, where a large number of open positions are concentrated. open interest capture 2
At the moment, open interest is concentrated at $ 10,000 and $ 11,000. Meanwhile, a noticeable increase in open interest is observed from the lower level of $ 9,000.
As a result, the mark of $ 10,000 may act as a powerful resistance, heading towards the end of the term. If prices begin to rise, call sellers may take short positions in spot markets so that the cryptocurrency cannot move to an area above $ 10,000.
At the time of writing, Bitcoin is trading at $ 9,200, which is 4% less than a day ago. At night, the leading cryptocurrency exchange rate fell below $ 9,000.
Bitcoin has been trading in the range of $ 9,000 to $ 10,000 since halving itself on May 11th.