Bitcoin is not yet at $65,000 per coin, despite hopes. Since the FED announcement, the flagship crypto has been stagnating between $63,000 and $64,000. However, the imminent expiration of options, which represents no less than $8.1 billion, could shake things up. Between bullish sentiment and increased volatility, investors are preparing 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 options: who will have the last word?
Bitcoin options, closely linked to the US elections,a colossal value of $8.1 billionare due to expire this Friday. This type of deadline often makes the market shudder. Indeed, thebalance between “calls” (purchase options) and “puts” (sale options) is a key indicator of where this crypto is going.
Currently, the put/call ratio fluctuates around 1.12a figure that tends towards selling pressure. However, nothing is decided.
- $8.1 billion in options in play;
- Put/call ratio of 1.12;
- Increased volatility expected.
The last expiration of options of this amount, in March 2021, saw a similar scenario : a pause followed by a bullish recoveryOptimists are betting that history could repeat itself, but beware of the bears who have not yet had their last word.
” Volatility is expected as investors prepare their moves “, underlines an expert.
The crypto-flagship in the eye of the storm
Bitcoin is not alone in this battle. Rising reserves on crypto exchanges suggest that Traders anticipate imminent liquidation. For the past three weeks, exchange reserves and open interest have been steadily increasing, signals that indicate an intensification of activity. These market indicators are often harbingers of major turbulence for the flagship crypto.
The crypto market could thus experience serious volatility. Investors have their eyes fixed on the evolution of trends. transaction volumes also show that many are ready to react quickly to the slightest sign of a bearish correction.
In short, whether it's a massive sell-off or a bullish boost, anything is still possible this week for bitcoin (BTC) and the crypto market as a whole.
Also note that options expiration could weigh heavily on the market this week, with bitcoin under pressure, oscillating between euphoria and fear.
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