Bitcoin Options Worth $1.3 Billion Expire
The largest lot of Bitcoin options until the year's end expired on Nov 27. The number stood at 78,000 Bitcoin (BTC) with a notional value of $1.3 billion.
The largest lot of Bitcoin options before the end of the year expired on Nov. 27. The number was recorded as 78,000 Bitcoin (BTC) with a notional value of $1.3 billion, according to data analytics firm Skew.
A huge number of Bitcoin options
Skew noted that the expiry of this huge number of BTC options signalled the biggest lot until the close of the year. The data analytics firm also availed insights showing that Bitcoin spot trading and BTC derivatives were doing well in spite of the recent 10% correction by the leading cryptocurrency.
Bitcoin has been on a price frenzy because, after a bullish rally where the BTC price soared to around $19,500 on certain exchanges. The digital asset underwent a notable price correction, Bitcoin dropping below $16,500.
However, market analysts had explained that a price correction was expected of the mainstream cryptocurrency, at least if one were to look at it from a historical point of view. Previously, after a massive bull run, Bitcoin’s price has been known to fall back slightly on crypto exchanges.
For instance, the Bitcoin price corrected sharply to $17,250 as a number of crypto whales moved their BTC holding to exchanges. Some of the factors attributed to this price correction included a short-term resistance level, the fear of missing out (FOMO), and selling-off pressure by BTC whales.
Next expiry expected on Christmas Day
The next largest Bitcoin options at 66,500 BTC is expected on Christmas Day. Skew has also disclosed that CME has emerged to be one of the biggest Bitcoin futures markets favored by financial institutions.
This is because its open interest stands at $1.16 billion, with OKEx coming second at $1.07 billion, even if it witnessed a Bitcoin exodus after reopening its withdrawal services that had remained closed for weeks after one of its private key holders decided to cooperate with a public security firm in regard to an ongoing “investigation.” Therefore, high open interest in Bitcoin futures signals the growing demand by institutional investors.
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