Although cryptocurrency traders are excited about the price increase, many analysts are focusing on the expiration of the big bitcoin and etherium options ending before Halloween. Scave.com’s data shows that in bitcoin options. 750 million is about to expire and prices could fluctuate.
The price of Bitcoin (BTC) in global exchange reached the high of 2020 on Tuesday at the level of 13,490 touches. Prices soared when news leaked that DBSA, the largest bank in Southeast Asia, had launched a digital asset exchange.
Despite major price increases this month, the bitcoin and etherium markets are expected to remain volatile over the weekend, as a large number of options expire on October 30. Professional data and analytics firm Squave.com discussed the situation on Twitter on October 25.
“60K [in] Bitcoin options expire this week, 750MLn + notional, “Scave Tweeted. The main closing will be celebrated not only with the rise in prices but also on the second day of the 12th anniversary of the Bitcoin White Paper. In addition to Scave’s statistics, the exchange, Deribit, which has the most Bitcoin and Ethereum options contracts, published an article about “trading uncertainty” with a view to ending on October 30.
Deribit has published a chart showing the current term structure of Deribit BTC options. The Deribit report notes that “due to the time value of the options, the word structure tends to tilt upwards.”
“However, the humps showed sharp price movements expected over a certain period of time. As with traditional markets, the BTC market has kept the price of potential volatility in the October-October election week until November. Increased volatility is expected to continue, at least until the end of the Q&A, ”added the Crypto Derivatives Exchange.
According to Deribit’s Crypto Derivatives Channel on Telegram, a recent signal on October 26, 2020 explained that currently 61k K BTC options are due to expire on October 0, with 400K held at Deribit. Additionally, 190K ETH options (million 76 million) expire on the same day of which 164k are held in derivatives.
Deribit’s Crypto Derivatives Signal Channel further questions:
This month we have seen significant reversals [one] Month squaw and bitcoin testing annual highest. The end of October 30, 2020, comes just days before the eagerly observed US election. With more than 7% of open interest ending on a strike of 13,000, no initial unpredictable U.S. Could election news or partial movement trigger a bitcoin strike in the corresponding stock market to surpass and increase volatility?
On Tuesday, Squee tweeted about Deribit’s October expiration, saying dealers are long overdue. “Calls to 12K, 12.5K, 13K, and 14K are open to all 2k + bitcoin options for the end of October,” the researchers said. Tweeted. The biggest strike is the 9K put in which more than 5K options are open. According to where October is marked, in the 40s, potential dealers are long against the overwriters.
Of course, speculators have put a lot of weight in the crypto futures and options markets and often these secondary markets do nothing. For example, traders and analysts often talk about CME gaps that never fill up and end up with big options that are extremely tedious. For example, cryptocurrency traders expected a lot of volatility after speculating about more than 87k bitcoin options ending on September 25th.
Similarly, for the upcoming Halloween Bitcoin and Etherium options expiration, Deribit’s data showed a value of 67k (67%) in the 87 87K September 25 contract. Historical BTC price figures for the day showed that Bitcoin opened at, 10,248 on the 25th and closed at 10,771 later in the afternoon. Option markets had no effect on spot market prices. Bitcoin markets have not been tumultuous since the end of the big term and have since risen 24.4%.
30 October What do you think about the expiration of $ 750M + bitcoin options? Let us know what you think about this topic in the comments section below.
Image Credits: Shutterstock, Pixabay, WikiCons, Squaw.com, Deribit, Twitter,
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