Although the price of Bitcoin lost 10% in the past week, it seems that the price returned from the $ 8,700 support and recovered gradually. Despite the recovery, the leading cryptocurrency, which is known to target $ 9,000 and subsequently $ 10,000, may hit a hard rock in the coming days and fall in price again.
Bitcoin Contracts in CME Expiring
The main reason for this is that 50% of CME’s Bitcoin derivative products, which proved to have an impact on the price in previous dates, expire on Friday. The number of open Bitcoin positions on the platform recently broke a record, and in fact, the impact of CME on the market also increased in this context. CME currently has $ 420 million of open Bitcoin positions and half of them, ie approximately $ 210 million, are expiring on Friday.
In fact, it turned out that not only Bitcoin futures but also some of the Bitcoin option contracts will expire.
Approx 50% of open interest for each product
Watch the rolls! pic.twitter.com/r3niIa1BnY
— skew (@skewdotcom) May 26, 2020
The expiration of Bitcoin futures and option contracts previously brought about sharp declines in price.