Here's Why $16.5,000 Is Key For November's $1.14B Bitcoin Options Expiry
BTC bulls sold out on the drop to $15,500 on Nov 21, and further declines could follow if the bears take advantage $245 million at Friday's expiration.< /p>
Market analysis
Bitcoin (BTC) faced a 7.3% decline between November 20 and 21 as it tested the $15,500 support. Although the correction appears small, the move caused $230 million in futures contract liquidations. As a result, leveraged bulls came out ill-prepared for the $1.14 billion options monthly expiration on Nov. 25.
Bitcoin investor sentiment soured after Genesis Trading, part of the Digital Currency Group (DCG) conglomerate, halted payments to its crypto lending arm on November 16. Most importantly, DCG owns fund management company Grayscale, which is responsible for the largest institutional Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC).
Additionally, Bitcoin miner Core Scientific warned of “substantial doubt” about continuing operations over the next 12 months given its financial uncertainty. In its quarterly report filed with the United States Securities and Exchange Commission (SEC) on November 22, the company reported a net loss of $434.8 million in the third quarter of 2022.
Meanwhile, New York Attorney General Letitia James sent a letter to members of the US Congress on November 22 recommending a ban on the purchase of cryptocurrencies using funds in IRAs and defined contribution plans such as 401(k) and 457 plans.
Despite the best efforts of the bulls, Bitcoin was unable to release...
BTC bulls sold out on the drop to $15,500 on Nov 21, and further declines could follow if the bears take advantage $245 million at Friday's expiration.< /p>
Market analysis
Bitcoin (BTC) faced a 7.3% decline between November 20 and 21 as it tested the $15,500 support. Although the correction appears small, the move caused $230 million in futures contract liquidations. As a result, leveraged bulls came out ill-prepared for the $1.14 billion options monthly expiration on Nov. 25.
Bitcoin investor sentiment soured after Genesis Trading, part of the Digital Currency Group (DCG) conglomerate, halted payments to its crypto lending arm on November 16. Most importantly, DCG owns fund management company Grayscale, which is responsible for the largest institutional Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC).
Additionally, Bitcoin miner Core Scientific warned of “substantial doubt” about continuing operations over the next 12 months given its financial uncertainty. In its quarterly report filed with the United States Securities and Exchange Commission (SEC) on November 22, the company reported a net loss of $434.8 million in the third quarter of 2022.
Meanwhile, New York Attorney General Letitia James sent a letter to members of the US Congress on November 22 recommending a ban on the purchase of cryptocurrencies using funds in IRAs and defined contribution plans such as 401(k) and 457 plans.
Despite the best efforts of the bulls, Bitcoin was unable to release...
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