News : A huge amount of contract option Bitcoin will expire on this Friday – time to worry?

in blockchain •  4 years ago 

After a decline of 9,900 USD on the region of 9,200 USD last week, Bitcoin is beginning to slightly increase back to the region of 9,400 USD with a nearly 4% increase in the last 24 hours. However, the leading cryptocurrency can hardly create a good growth when there is a huge amount of contract to choose Bitcoin Preparation to expire at the end of this week.

There are more than 100,000 Bitcoin options with a total value of USD 930 million which will expire on 26 Jun. This figure accounts for nearly 70% of all open interest rates. This asks a question of whether the professional trader has moved to short when the maturity date is coming.

Data from Skew shows an open interest rate of US $1.3 billion, up 100% in the past two months. So why have a large number of contracts active in 6 months?

This is probably because when the market is fluctuable, the trade will be more appropriate than investment. In 3 months, when BTCUSD fluctuts strongest, some investors have avoided buying bitcoins. They trade with BTCUSD Futures. This allows them to make a profit without the need to hold bitcoins.

And if there is a large number of contracts that expire so the market will often turn negative. Therefore, perhaps the current price increase will soon be over. However, it's just a prediction as the market always has unexpected fluctuations.

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