The expiration of bitcoin options usually generates volatility in the price of the currency.
BTC is close to $69,000, after a significant increase this week.
This Friday, October 18 at 8:00 am (UTC), 11,000 bitcoin (BTC) options expired on the Deribit exchange, the largest in the cryptocurrency options and derivatives market.
This event had a buy and sell ratio of 0.78, indicating that for every 10 sales contracts, there was 7.8 purchase. Such a ratio suggests an optimistic bias among investors, with a clear preference for buying.
Bitcoin options expired with a maximum pain point of $64,000, meaning this was the price at which most option holders would end up out of profit, being the point where options contracts would have the least financial impact for the holders.
The notional value, which represents the total amount of capital involved in these contracts, stood at 1,260 million dollars, indicate the data from Greeks.live.
Bitcoin options are financial contracts that allow buyers to purchase or sell bitcoin at a preset price (strike price) before an expiration date. These financial tools facilitate speculation on the future price of bitcoin without the need to physically possess the currency, serving for hedging or leverage strategies.
Historically, option expirations generate volatilitybut the preference toward call options suggests that the price of bitcoin could seek to stabilize or even increase to minimize the losses of those who hold call options.
Meanwhile, following the behavior expected by traders, bitcoin is on the rise as seen in the following chart. TradingView:
In addition to the movement in options, during the week prior to expiration, the bitcoin price exchange-traded funds (ETFs) saw the entry of almost $2 billion, as reported by CriptoNoticias. This flow of capital into ETFs has been a significant factor in the recent momentum in the price of BTC, which is up 14.2% in a matter of a week.
The cryptocurrency community and analysts have expressed expectations that bitcoin price will reach $70,000 in this month of October. According to Polymarket bettors, the market shows a firm belief in this goal, backed by optimism and growing interest in the currency, as this medium reported.
This article was created using artificial intelligence and edited by a human Editor.
