Bitcoin Price Update: $BTC Options Expire Today; Here’s What To Expect Next?
Bitcoin price is currently flirting around $30,042 levels after making strong gains earlier this week. As of press time, BTC price is trading at $30,015 with a market cap of $582 billion.The world’s largest cryptocurrency is poised for the strongest weekly close after March 2023, amid a flurry of applications for spot Bitcoin ETF from some of the largest financial institutions in the world.
Bitcoin Options Expiry, Bitcoin Price To $32k?
Earlier this month after the strong US SEC action against Coinbase and Binance, the BTC price dropped to $26,300 fueling bearish trades in the options market. As per data on Deribit, the put-to-call ratio of 0.82 compares the open interest of buy options worth $415 million to sell options worth $300 million. However, the actual outcome will be lower because bearish traders were taken by surprise when Bitcoin surged by 10% in just two days.
For example, if Bitcoin’s price stays around $29,800 at 8:00 am UTC on June 23, there will be only $5 million worth of put options. This difference occurs because the right to sell Bitcoin at $28,000 or $29,000 becomes invalid if BTC is trading above that price at the time of expiration.
On the other hand, bulls are likely to take away a profit of $250 million in today’s expiry. Below are the likely scenarios depending on the BTC price range.
- For the price range between $27,000 and $28,000, there are 3,500 buy options (calls) compared to 1,200 sell options (puts). This results in a net advantage of $60 million for the buy instruments.
- In the price range between $28,000 and $29,000, there are 7,300 buy options (calls) versus 500 sell options (puts). The net advantage for the buy instruments increases to $195 million.
- Moving to the range between $29,000 and $30,000, there are 8,600 buy options (calls) and only 100 sell options (puts). The advantage for the buyers (bulls) expands to $250 million.
- Finally, for the range between $30,000 and $31,000, there are 10,400 buy options (calls) and no sell options (puts). The bulls have complete control, resulting in a profit of $310 million.
What’s Driving Bitcoin Price Bull Run?
BlackRock has put its foot in the door with its spot Bitcoin ETF application, thereby triggering a major euphoria in the crypto market. “An approval would profoundly impact the market structure of Bitcoin, as it would reduce the barriers for financial advisers to offer exposure” to the token, Vetle Lunde, senior analyst at K33 Research, wrote in a note.
Cathie Wood, the CEO and chief investment officer of ARK Invest, provided insights into why the firm is optimistic about the price of Bitcoin and has set a target of $1 million. Wood believes that Bitcoin has the potential to outperform even in a deflationary environment due to its ability to address the counterparty risk associated with the traditional financial system.
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
