In a tweet Monday, the cryptocurrency data provider (SCIO) reported that 102,200 Bitcoin (BTC) options will expire on Friday.
Options contracts allow their holders to buy or sell Bitcoin at a specified price, which is known as the strike price.
and Friday's expiration contains noticeable combinations of the $ 15,000 strike price and the $ 20,000 strike price, according to Scio.
The expiration date of Bitcoin options contracts is widely seen as a volatile event for the main digital currency because, as expiration approaches, contract holders modify their contracts.
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and profitable traders may also decide to take compensation and get rid of the digital currency.
events like these are known to cause large fluctuations in Bitcoin's value. The impact of the contract on Bitcoin's price usually becomes clearer about a day or two before expiration.
cryptocurrency derivatives trading rose this year as more traders and institutional investors search for additional Bitcoin exposure.
Last week, the cryptocurrency derivative platform (Derbit) began offering Bitcoin futures contracts with an execution price of $ 10,000 that expires on September 24, 2021.
In other words, bitcoin fans who think the digital currency will reach a six-digit starting point can take that bet in the futures market.
Bitcoin is currently in the midst of a bull market that is partly fueled by institutional investors and large OTC deals.
even with 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 - meaning addresses that sent less than 25 % Of Bitcoin it has ever received. The serial analysis believes that illiquid wallets hold 77% of the 14.8 million Bitcoins that have not been lost.
approximately $ 2.3 billion Bitcoin futures are set to expire on Christmas Day, setting the stage for a choppy week in the cryptocurrency market.
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