Bitcoin headed for Christmas volatility as 100K BTC options expire

December 22, 2020   Bitcoin

In a Monday tweet, crypto data provider Skew reported that 102,200 Bitcoin (BTC) options will expire on Friday. Options contracts allow holders to buy or sell Bitcoin at a specific price, which is known as the strike price. The Friday expiry has notable clusters around the $15,000 strike price and the $20,000 strike price, according to Skew.

The expiry date of Bitcoin options contracts is widely regarded as a volatile event for the flagship cryptocurrency because, as the expiry nears, holders adjust their contracts. Traders who are in profit may also decide to receive the payout and dump the cryptocurrency.

Such events have been known to cause large fluctuations in Bitcoin’s value. Typically, the impact of a contract on BTC price becomes more apparent roughly one or two days before expiry. Crypto derivatives trading has soared this year as more traders and institutional investors look for added Bitcoin exposure. Last week, crypto derivatives platform Deribit began offering Bitcoin futures with a $100,000 strike price expiring on Sept. 24, 2021. In other words, Bitcoin enthusiasts who think the cryptocurrency will reach a six-figure moonshot can now take that bet in the futures market.

Roughly $2.3 billion worth of Bitcoin futures are set to expire on Christmas day, setting the stage for a volatile week in the cryptocurrency market.

Source

Share
Pin
Send
Share
Share

Related Crypto News and Promotions




Top upcoming ICOs

ICOs Rating Days left
1 2local 5 4
2 PointPay 5 176
3 Geco.one 4.9 32
4 Pawtocol 4.9 32
5 Ledder 4.9 62
6 DogData 4.9 63
7 Tycoon 4.9 93
8 SerenitySource 4.9 93
9 Curate 4.9 123
10 IdeaFex 4.9 506

ICOs rating

Top Cryptocurrencies

Сryptocurrency CVIX Price Change, 24h
Bitcoin 67 $32 142.12 -0.77%
Ethereum 82 $1 342.91 1.28%
Tether 1 $1.00 0.08%
Polkadot 92 $16.77 -2.72%
XRP 64 $0.267600 -0.62%
Cardano 82 $0.340700 -1.23%
Chainlink 86 $22.68 -4.15%
Litecoin 67 $133.79 -2.70%
Bitcoin Cash 64 $426.32 -2.00%
Binance Coin 41 $41.75 0.85%

Cryptocurrencies rating

Top Crypto Brokers

Broker Status
1 FIBO Group information
2 OctaFX information
3 101investing information
4 T1Markets information
5 InvestLite information
6 Orbex information
7 easyMarkets information
8 XM information
9 LH Crypto information
10 USGFX information

Brokers rating

Top Crypto Exchanges

Exchange Volume change, 24h
1 Binance 0.03%
2 Binance.KR 17.13%
3 EtherFlyer 41.08%
4 HBTC 8.47%
5 ZG.com 41.02%
6 Dsdaq 8.46%
7 Hydax Exchange 8.39%
8 WBF Exchange 3.28%
9 Mexo Exchange 7.57%
10 Xtheta Global 9.56%

Exchanges rating