Cryptocurrency
Bitcoin Is Braced For A Near-$1 Billion Shock This Week
Forbes reports, “Bitcoin traders and investors have seen a return to volatility this month, with the bitcoin price suddenly dropping in early September. “The bitcoin price, which had broken $12,000 per bitcoin at the end of August, dropped to around $10,000 amid a broader market sell-off before somewhat rebounding. “This week, the bitcoin market is braced for almost […]
Forbes reports, “Bitcoin traders and investors have seen a return to volatility this month, with the bitcoin price suddenly dropping in early September.
“The bitcoin price, which had broken $12,000 per bitcoin at the end of August, dropped to around $10,000 amid a broader market sell-off before somewhat rebounding.
“This week, the bitcoin market is braced for almost half of nearly $2 billion worth of bitcoin options to expire—something that could bring a fresh wave of volatility.
“Bitcoin open interest, effectively traders betting on what they expect the price of bitcoin to be, has climbed to $1.9 billion—around triple what it was just a few months ago, according to data from bitcoin and crypto analytics provider Skew, with some 47% of existing contracts due to expire this coming Friday.
:The looming bitcoin options expiry could spark a fresh bout of price volatility. Previous large expiries have caused the market to ‘bounce quite aggressively,’ according to some analysts.
:When options expire, the trader that made the bet will either get a payout or lose their stake.
“The bitcoin options market has swelled through 2020, led by Deribit, a Panama-based derivatives exchange, which accounts for the vast majority of the bitcoin options contracts.
“Meanwhile, bitcoin market watchers have been buoyed recently by bitcoin’s bounce at the psychological $10,000 level…”