Bitcoin bulls aim for $ 50,000 before $ 675 million BTC options expire on Friday

[ad_1]

On Friday, August 13, a total of $ 675 million of Bitcoin (BTC) options are expected to expire and currently the bulls are enjoying a significant advantage after a weekly rally of 20% to $ 46,743.

According to Cointelegraph, two things that marked the positive change observed by institutional investors were deposits to derivatives exchanges reaching their lowest levels since May 11 and entities with 10,000 to 100,000 BTC adding more than 12 billion dollars. additional Bitcoin dollars to their holdings.

Meanwhile, cryptocurrency adoption continues to rise as Paypal-owned payments company Venmo has extended its support by allowing credit cardholders to convert their cash back rewards into four cryptocurrencies.

Investors may also react to the new wave of indirectly exposed exchange traded funds (ETFs) deposits with the United States Securities and Exchange Commission. The latest request came from asset manager VanEck on August 10.

BitMEX’s $ 100 million settlement and ETF hopes fueled bullish bets

On August 3, the chairman of the United States Securities and Exchange Commission, Gary Gensler, hinted that he would be more willing to accept a request for a BTC ETF if specific changes were made to the instrument.

This week, BitMEX also agreed to resolve a case from the United States Commodity Futures Trading Commission and Financial Crimes Enforcement Network. As part of the settlement, BitMEX will pay up to $ 100 million in civil monetary penalties “for illegally operating a cryptocurrency trading platform and anti-money laundering violations.”

This bullish flow of information helped fuel some bullish bets for Friday’s options expiration, but some traders got too excited.

Bitcoin options accumulate open interest for August 13. Source: Bybt

The total figure is similar to the $ 625 million options expiration the previous week, which also had a call-to-put ratio of 1.78 at the time. This week, neutral to bullish calls dominate again and protective puts are below the current price level of $ 46,500.

If Bitcoin stays above $ 46,000 on August 13 at 8:00 a.m. ET, all 5,278 BTC put option contracts will become worthless.

On the other hand, only 5,335 BTC call (buy) options will be part of the expiration, which is equivalent to $ 245 million. Investors became too enthusiastic, buying $ 48,000 and more bullish options, which reduced the potential of those calls by $ 435 million.

Bears place their dreams on Bitcoin price below $ 44,000

The bulls could use their significant advantage to force the price higher, as hitting the $ 48,000 mark would increase the notional option expiration by $ 80 million. In this case, the bulls advantage would reach $ 325 million and display even stronger dominance in the market.

The only solution for bears is an unlikely deadline of less than $ 44,000. That would drastically reduce the bulls advantage to a paltry $ 80 million if that happened on Friday.

While it may be too early to call the race, the incentives to move the price of Bitcoin 5% below $ 46,500 do not seem worthy of the effort.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk. You should do your own research before making a decision.

[ad_2]