Several options traders are betting that bitcoin prices will hit $ 80,000 in May 2021. Meanwhile, more than 100,000 bitcoin options worth more than $ 6 billion will expire on Friday, breaking the previous expiration record seen. in january.
$ 6 billion in Bitcoin options on the verge of falling, April bets aiming for $ 80,000 per Bitcoin
Today, March 26, 2021, the crypto ecosystem is about to witness the expiration of one of the largest options to date, as more than 100k bitcoin options will expire. Today’s $ 6 billion in expirations surpasses the last record in January, when $ 4 billion in bitcoin options expired.
Data from skew.com shows that there is close to $ 15 billion in open interest on exchanges offering bitcoin options. The Deribit exchange captures more than $ 12 billion of aggregate open interest.
Deribit leads both open interest and option volume, followed by Bit.com and Okex. Huobi has the lowest open interest in terms of bitcoin options, while Binance also has the lowest volume of all exchanges.
Meanwhile, the co-founders of the Glassnode data analytics team detailed that there are a number of traders who are betting that BTC will be $ 80,000 at the expiration of April 30, 2021. Glassnode executives also mentioned the massive expiration that will end at end of the day.
“This Friday $ 6 billion in options contracts will expire”, shared the founders of Glassnode on their Twitter account indicated. Bitcoin price expectations for April are high and many investors place their new bets at $ 80k, ”the researchers added.
“April is going to be an incredible month,” said one person saying replying to the tweet.
Bias: ‘Could it be the beginning of the end for Contango?’
If the price is below the $ 80k level after expiration, the option contracts that bet at that price will lose out. Also, bitcoin fans on Reddit say that after Friday’s expiration happens, people should “prepare for some serious action next week and beyond.”
Recently, Bitcoin.com referred to the contango effect on bitcoin, which is the difference between spot prices and derivatives market prices. Skew.com says the end of contango for bitcoin could come in the near future.
“As performance-hungry investors embrace cryptocurrencies, could this be the beginning of the end of the bitcoin futures curve contango? CME seems to be leading the way, “Skew tweeted. Today’s expiration should help people see where BTC prices will lead in the coming weeks. Bitcoin prices of $ 80,000 are much higher than they are today, but historically BTC prices perform well during the month of April.
What do you think about the $ 80k option strikes and the $ 6 billion in bitcoin options expiring today? Let us know what you think on this topic in the comment section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Glassnode,
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