The upcoming $1.9 billion Bitcoin monthly options expiry
The upcoming Bitcoin monthly options expiry on August 25 is crucial in determining whether the $26,000 support level will hold. Here are the key points:
– Bitcoin bulls must ensure Bitcoin’s price stays above $27,000 to prevent a potential loss of $380 million.
– Cryptocurrency bulls are facing regulatory challenges, with exchanges like Binance and Coinbase entangled in lawsuits with the SEC.
– Bitstamp has halted staking services for U.S.-based clients, and the classification of Ether as a commodity or security remains uncertain.
– Data shows that bullish investors were overly optimistic about Bitcoin’s price, leading to an unexpected 12% correction.
– The current options open interest favors put options, with a net result favoring put instruments by millions of dollars in different price ranges.
Bitcoin bears aim for sub-$26,000 to maximize their gains
Bitcoin bears have the advantage in the options market, and here are the possible scenarios:
– Between $25,000 and $26,000: 100 calls vs. 15,100 puts, favoring put instruments by $380 million.
– Between $26,000 and $27,000: 1,400 calls vs. 11,000 puts, favoring put instruments by $250 million.
– Between $27,000 and $28,000: 4,000 calls vs. 8,400 puts, favoring put instruments by $110 million.
– Between $28,000 and $29,000: 6,000 calls vs. 5,300 puts, with a balanced result between call and put options.
Closing thoughts
Given the repeated drops below the $26,000 support level and the current regulatory landscape, it is likely that Bitcoin bulls will struggle to reverse the bearish momentum after the options expiry. It wouldn’t be surprising if the $26,000 level is tested again. The information provided in this article is for general purposes only and should not be taken as legal or investment advice.
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