According to the technical charts, the fluctuating price action sent short-term option traders into “fear” mode. In turn, an analysis by Marcel Pechman determined that there is a lack of conviction on the part of buyers using derivatives markets, which is likely related to recent negative regulatory concerns. The latest victim of regulatory pressure was exchange Coinbase’s decision to avoid plans to offer a cryptocurrency lending program.
According to Forbes, in the short term, Bitcoin options contracts for almost 80,000 bitcoins – or about $ 3.4 billion at current prices – expire on Friday.
The early expiration of Bitcoin options could trigger an outbreak of price volatility as the previous large expirations attracted investors’ attention.
The sharp drop in the price of Bitcoin and cryptocurrencies in recent days means that many of the bullish contracts are going to be liquidated, and some market watchers have warned that the price of bitcoin could sink further.
Bitcoin has lost support at the $ 44,000 mark and it looks like it is going to test its $ 39,000 floor, Tim Frost, CEO of decentralized financial investment platform Yield App, warned. Forbes.
If it falls around here, we can expect a significant correction to take place. For this reason, the price of Bitcoin and other cryptocurrencies, including other top ten cryptocurrencies Ethereum, Cardano, Binance’s BNB, Ripple’s XRP and solana, are expected to remain under pressure this week due to “risk sentiment” caused by the growing concerns around the potential collapse of Evergrande.