Bitcoin trading volumes at a 5-year low and the S&P 500 reaching its lowest levels in over 3 months could spell trouble for BTC bulls.
The upcoming $3 billion in Bitcoin monthly options expiration on Sep. 29 could prove pivotal for the $26,000 support level.On one side, Bitcoin's recognition in China appears to be strengthening, following aConversely, Bitcoin's spot exchangeaccording to on-chain analytics firm CryptoQuant. Analyst Caue Oliveira pointed out that a significant factor behind this decline in trading activity is the growing fear surrounding the macroeconomic outlook.
Historically, this index exhibits an inverse correlation with risk-on assets, tending to rise when investors seek safety in cash positions.The open interest for the Sep. 29 options expiration currently stands at $3 billion. However, it is expected that the final amount will be lower due to bullish expectations of Bitcoin's price reaching $27,000 or higher.
However, if Bitcoin’s price remains near $26,300 at 8:00 am UTC on Aug. 25, only $120 million worth of the call options will be available. This difference happens because the right to buy Bitcoin at $27,000 or $28,000 is useless if BTC price is below this level on expiry.Below are the four most likely scenarios based on the current price action. The number of options contracts available on Sep. 29 for call and put instruments varies depending on the expiry price.
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