Bitcoin maintains a steady price above $100,000; however, the market could face volatility due to the expiry of $3.04 billion in options.
Overview of Bitcoin Options Expiry
This month, Bitcoin (BTC) showed a slight gain of 1.29%, keeping above the $100,000 level. However, the expiration of options may bring uncertainty to the market. Approximately $3.04 billion in options is set to expire with a Max Pain Price of $107,000. The Put/Call Ratio stands at 0.95, indicating more long positions, while Bitcoin's price trades significantly below this level at $104,682.
Market Reactions and Future Predictions
The existing gap between market price and Max Pain Price signals that traders holding significant positions may incur losses. As a response, traders typically open more short positions for hedging. This trend is confirmed by a significant rise in Options Open Interest. The bearish sentiment is prevalent in the futures market, where the number of sellers has increased.
Conclusion
Despite the steady interest from spot investors, and potential positive impact of large purchases on the market, a sharp recovery in Bitcoin's price is unlikely to occur before the options expiry. It is expected that if this recovery does not happen, Bitcoin's price could slide even lower.
In the coming days, amid the options expiry and a shift from long to short positions, Bitcoin could face additional pressure on its price.
