People have taken to social media to speculate on the pricing of Bitcoin (BTC), with many debating on whether bullish or bearish investors would profit amid expiring BTC options on Friday.
Due to the FTX debacle’s liquidity collapse, thousands of crypto enthusiasts have lost access to their funds on the fallen crypto exchange, where investors saw $290 million in leverage buyers liquidate their holdings.
Bitcoin bulls have needed to aim high at $20,000 or more as a huge cache of weekly options totalling $600 million are set to expire on 18 November, holding from 25 October for nearly two weeks, analysts have speculated.
Actual totals may be lower than estimated, allowing bear speculators to bet on an $18,000 or higher mark following after investors dumped thousands of BTC after embattled crypto exchange FTX went bankrupt.
Bitcoin prices readjusted following the collapse, falling to prices from $15,800 to $17,800 over the last week, with investors fearing the crisis spreading to other corners of the market, forcing investors to sell their crypto positions.
FTX also caused people to lose massive losses, including crypto lending platform BlockFi, who had $400 million in credit assets on FTX US. Liquid, a Japanese cryptocurrency exchange, also faced similar issues following the crisis.
Who Laughs Last?
According to reports, Bitcoin bears can potentially snap up a $120 million bonus by keeping Bitcoin (BTC) under $16,500.
Should Bitcoin remain below $17,500 on 21 October, roughly a tenth of total call options will remain. Reports add that a right to buy Bitcoin priced at $18,000 to $19,000 per coin would become worthless if it trades below the expiry price, indicating a need for BTC to pump beyond $18,00 to succeed.
On Friday, $600 million worth of Bitcoin options expire, providing bears justification to price BTC beneath $16,000.
— The Alpha space (@TheAlphaspace1) November 18, 2022
For Friday’s $600 million BTC options expiry, bears are better positioned, but if Bitcoin prices rise beyond $18,000, bulls could turn the tables.
According to Twitter user The Alpha Space, Friday’s expiry date for BTC options would provide “bears justification to price [it] beneath $16,000.”
It added: “For Friday’s $600 million BTC options expiry, bears are better positioned, but if Bitcoin prices rise beyond $18,000, bulls could turn the tables.“
#Bitcoin Analysis: Today Options expire, thats why (stock) markets are hovering arround key levels. Clearly Bullish strength is lacking. Bears will most likely push down price next week. Expecting 14k$ #BTC, which is very likely to be the last dip👀 pic.twitter.com/DiO7wsxAXz
— JimCramerIsSus (@CountDestroyer2) November 18, 2022
Another Twitter user commented that the expiring options were the likely reason why stock markets were “hovering around key levels.”
She explained further that bullish strength was “lacking” and that bears would “most likely push down the price next week.”
“Bears will most likely push down price next week. Expecting 14k$ #BTC, which is very likely to be the last dip,” she concluded.
