Nearly $ 2.3 billion bitcoin futures expire on Christmas Day, setting the stage for a turbulent week in the cryptocurrency market.
In a tweet on Monday, cryptocurrency provider Skew announced that 102,200 bitcoins (BTC) will expire on Friday.
Option contracts allow holders to buy or sell bitcoins at a fixed price known as the redemption price. The Friday expiration includes notable combinations of a $ 15,000 strike price and a $ 20,000 repurchase price, Skew said.
Skew BTC Options Expiration Time
The expiration date of bitcoin options contracts is generally viewed as a volatile event for the mainstream cryptocurrency, as contract holders adjust contracts as expiration approaches. Profitable traders can also decide to withdraw compensation and reset cryptocurrency.
BTC options expire on Friday at the buyback price, Skew said.
Such events are known to cause large fluctuations in the value of bitcoins. Typically, the impact of a contract on the bitcoin price becomes more pronounced a day or two before it expires.
Trading in derivative cryptocurrencies has grown this year as more traders and institutional investors seek opportunities to further leverage bitcoin. Last week, the Deribit cryptocurrency derivatives platform began offering Bitcoin futures at a $ 100,000 repurchase price until September 24, 2021. In other words, bitcoin fans who believe the cryptocurrency will hit the six-digit starting point can accept this. Futures market rate.
Bitcoin is currently in the middle of a bull market that is driven in part by institutional investors and large OTC deals. Even with the expected volatility in futures, there is a good chance that Bitcoin will remain well supported by institutional demand and the emergence of so-called illiquid wallets, that is, addresses that sent less than 25% of the BTC they ever received. Analysis of serial data shows that illiquid wallets contain 77% of the 14.8 million BTC that were not lost.