Event could boost bitcoin’s recent gains, pushing it beyond $30,000.
An unusually large expiration of bitcoin and ether options on Friday is likely to increase crypto volatility after bitcoin has spent a week hovering above $30,000. The cryptocurrency has spent the past 12 months below that mark.
A total of 158,774 June, Q2, and H1 bitcoin contracts worth $4.8 billion and 1.23 million ether options of $2.3 billion will expire on, which hosts over 85% of the global trading in these instruments. Options are financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at a certain price within a specific amount of time.
“It’s going to be quite exciting because there will be some pressure in either direction,” Strijers says. “If bitcoin goes up, it could be pushed up faster because market makers will be buying to offset their short positions, and if it goes down, which could happen of course, it will be going down faster because they will be selling.” Market makers in cryptocurrencies are large investors who provide liquidity to exchanges.
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