100,000 Bitcoin Options Prepare to Close: Who Will Win On June 26th?
Mostly, because literally in a week the term of validity of more than 100,000 Bitcoin options contracts for $930 million will expire. A cause for concern is the lethargic price movement of Bitcoin during June. After falling below $9,000, the flagship cryptocurrency was able to rise to $9,500, but its position is still quite shaky.
Growth of BTC interest
The growth of open interest in Bitcoin peaked in the last 2 months. In particular, Deribit exchange, which regulates about 77% of option contracts, continues to be among the leaders in the options market. Traders are counting on the victory of the bullish scenario, in which those who have acquired call options will be the winners.
To understand what sentiment prevails among investors, traders pay attention to the Bitcoin futures market. The expiration of Bitcoin futures also falls on June 26. To date, the volume of outstanding futures contracts for Bitcoin is $313 million. Most investors have relied on bullish contracts, considering that Bitcoin can test the price range of $11,000. Analyzing the market behavior of the flagship, today such a price increase seems unlikely.
Shortly sellers of futures will likely set a higher price for contracts. Thus, the contango situation will be realized when the buyer and the holder of the asset agree on a deferment. to protect yourself from price risk.
In September, current futures contracts can bring their owners a premium of 1.8%. This indicates the predominance of optimistic sentiments regarding the price movement of the flagship cryptocurrency.
What happens if the Bulls win?
Traders continue to hope that the price of Bitcoin will jump to the level of $11,000 and higher until June 26. This will allow them to win in a speculative battle. For an option to add value, the price of a crypto asset must increase from $100 and above. If this scenario is realized, option buyers may receive a premium of about $1.5 million.
Over the past two months, institutional investors have shown record interest in Bitcoin. Many of them will likely focus on the options market and other derivatives to make decisions on the profitability of entering the cryptocurrency market. Today, the question remains open as to which strategy will be the winner – the acquisition of call or put options.