Bitcoin options data shows BTC price below $17,000 gives bears a $200 million payday on Friday
BTC bears should benefit from the $710 million options expiry this week, which could be used to add pressure extra sell to bitcoin price.
Market analysis
Bitcoin (BTC) fell below $16,000 on November 9, dragging the price to its lowest level in two years. The two-day correction totaled a 27% downtrend and wiped out $352 million in leveraged long (buy) futures.
To date, the price of Bitcoin is down 65% for 2022, but benchmarking its price action against the world's biggest tech companies is key. For example, Meta Platforms (META) is down 70% YTD and Snap Inc. (SNAP) is down 80%. Additionally, Cloudflare (NET) lost 71% in 2022, followed by Roblox Corporation (RBLX), down 70%.
Inflationary pressures and fears of a global recession have kept investors away from riskier assets. This hedging move caused the five-year yield on US Treasuries to hit 4.33% earlier in November, its highest level in 15 years. Investors are demanding a higher premium for holding government debt, signaling a lack of confidence in the Federal Reserve's ability to rein in inflation.
Contagion risks from the insolvency of FTX and Alameda Research are the most pressing issues. The trading group managed several cryptocurrency project funds and was the second largest trading exchange for Bitcoin derivatives.
Bulls were overly optimistic and will suffer the consequencesOpen interest for the Nov. 11 options expiry is $710 million, but the actual figure will be lower as bulls were ill-prepared for prices below $19,000. These traders were overconfident after Bitcoin held above $20,000 for almost two weeks.
Bitcoin options accrue open interest for the November 11 Source: CoinGlassThe call-to-put ratio of 0.83 reflects the imbalance between the $320 million call open interest and options sale (put) of 390 million dollars. Currently, Bitcoin stands near $17,500, which means that most bullish bets will likely become worthless.
If the price of Bitcoin remains below $18,000 at 8:00 UTC on November 11, the...
BTC bears should benefit from the $710 million options expiry this week, which could be used to add pressure extra sell to bitcoin price.
Market analysis
Bitcoin (BTC) fell below $16,000 on November 9, dragging the price to its lowest level in two years. The two-day correction totaled a 27% downtrend and wiped out $352 million in leveraged long (buy) futures.
To date, the price of Bitcoin is down 65% for 2022, but benchmarking its price action against the world's biggest tech companies is key. For example, Meta Platforms (META) is down 70% YTD and Snap Inc. (SNAP) is down 80%. Additionally, Cloudflare (NET) lost 71% in 2022, followed by Roblox Corporation (RBLX), down 70%.
Inflationary pressures and fears of a global recession have kept investors away from riskier assets. This hedging move caused the five-year yield on US Treasuries to hit 4.33% earlier in November, its highest level in 15 years. Investors are demanding a higher premium for holding government debt, signaling a lack of confidence in the Federal Reserve's ability to rein in inflation.
Contagion risks from the insolvency of FTX and Alameda Research are the most pressing issues. The trading group managed several cryptocurrency project funds and was the second largest trading exchange for Bitcoin derivatives.
Bulls were overly optimistic and will suffer the consequencesOpen interest for the Nov. 11 options expiry is $710 million, but the actual figure will be lower as bulls were ill-prepared for prices below $19,000. These traders were overconfident after Bitcoin held above $20,000 for almost two weeks.
Bitcoin options accrue open interest for the November 11 Source: CoinGlassThe call-to-put ratio of 0.83 reflects the imbalance between the $320 million call open interest and options sale (put) of 390 million dollars. Currently, Bitcoin stands near $17,500, which means that most bullish bets will likely become worthless.
If the price of Bitcoin remains below $18,000 at 8:00 UTC on November 11, the...
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