$ 6 Billion Critical Day Approaches For Bitcoin

0

Bitcoin investors are preparing for March 26, when the almost $ 6 billion option contract expires. Bitcoin lost 10.75% during the week ahead of this critical day.

Bitcoin investors gain the right to buy / sell BTC at a predetermined price up to a certain maturity with the options they buy. The option of almost $ 5.4 billion (more than 100,000 BTC) will expire on March 26, according to Bybt data.

This number sets a new record for the options market. The previous record was broken in January 2021 with $ 4 billion.

Sales pressure occurred in the market

Luuk Strijers, COO of Deribit, the largest options exchange in the crypto money industry, spoke to CoinDesk this critical day ahead. Commenting on the contracts on March 26, Strijers drew attention to the max pain point. According to current data, the maximum pain in Deribit is at the level of $ 40,000.

According to the narration of Ömer Evren Tanyaş, the max pain theory is based on the view that “institutional and big players generally sell options and as a result of their manipulation skills, these players will dominate the [small investor] who bought the option” (154).

Delta Exchange CEO Pankaj Balani said March 26 could create a selling pressure on Bitcoin. Strijers explained that this pressure could ease after Friday. Bitcoin, which lost 6.71% in 24 hours, is trading at $ 52,705.

See Also
$ 2.25 billion fund applies to SEC for Bitcoin investment

LEAVE A REPLY

Please enter your comment!
Please enter your name here