Bitcoin Resilient Above $69K Amidst Largest Futures Options Expiry, Potential End to Pre-Halving
Summary:
Despite the largest quarterly Bitcoin futures options expiry in history, Bitcoin's price remains steady above the $69,000 mark. With $15.1 billion worth of cryptocurrency futures options expired on Deribit, experts weigh in that resulting market volatility will minimally impact Bitcoin's long-term price potential, predicated on its foundational value. Yet, the critical question remains whether these maturing contracts' profits will be reinvested into new ones, influencing Bitcoin's future price dynamics. In other developments, Bitcoin's pre-halving price correction appears to be winding down, as noted by the digital currency's resilience amidst recent market events.
Bitcoin's value maintains its position above the $69,000 mark, even amidst the largest quarter-end Bitcoin futures options expiration in the market's history. According to Hao Yang, Bybit exchange's global head of derivatives trading, this massive expiration event may have a slight impact on short-term price fluctuations as people adapt or dismantle their hedging positions. Deribit's data reveals that cryptocurrency futures options worth a whopping $15.1 billion expired at 8:00 am UTC on Friday, March 29. Out of this total, $9.53 billion reflected the imminent expiry of Bitcoin options, with a potential "max pain" price of $51,000 and a put/call ratio of 0.84. Despite heightened volatility associated with options expiry, Yang notes that the max pain price point doesn't necessarily predict Bitcoin's long-term price potential as it is ultimately determined by its foundational value. Andrey Stoychev, Nexo's Prime Brokerage Division project manager, shares a similar idea, stating that due to the current situation of majority calls being in the money with dwindling puts, minimal price disruption is expected post-expiry. The pivotal question hinged on whether profits from calls will be channeled into fresh contracts is yet to answered. Apart from the expiry events, Bitcoin's value experienced a slight dip of 0.7%, trading at $69,924 24 hours before 10:35 am UTC, as per CoinMarketCap data. The first-ever cryptocurrency, nevertheless, displays an impressive 11.9% rise on the monthly chart. Coinciding with history, the pre-halving Bitcoin retracement took place, and according to Rekt Capital's video analysis on March 26, this correction phase could be concluding if Bitcoin surpasses its previous record-high of $69,000.
Published At
3/29/2024 2:34:41 PM
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