Several options traders are betting that bitcoin prices will reach $ 80,000 in May 2021. In the meantime, more than 100,000 bitcoin options worth more than $ 6 billion are due to expire on Friday, breaking the previous record maturity seen in January.
$ 6 billion in Bitcoin options set to fall, April bets target $ 80,000 per Bitcoin
Today, on March 26, 2021, the crypto ecosystem is about to witness one of the biggest option expirations to date, as more than 100,000 bitcoin options will expire. Today’s $ 6 billion maturity exceeds the last record in January, when $ 4 billion in bitcoin options expired.
Skew.com data shows that there are about $ 15 billion in open interest on exchanges offering bitcoin options. The Deribit exchange captures more than $ 12 billion of aggregate open interest.
Deribit leads in open contract volumes and options and is followed by Bit.com and Okex. Huobi has fewer open contracts in terms of bitcoin options, while Binance has the lowest volume of all exchanges as well.
Meanwhile, the co-founders of the Glassnode data analysis team have detailed that there are several traders betting that the BTC will be $ 80,000 maturing on April 30, 2021. Glassnode executives also mentioned the massive expiration set to end at end of the day.
“This Friday, $ 6 billion in options contracts are set to expire,” shared the Twitter account of Glassnode’s founders noticed. Bitcoin’s price expectations for April are high, with many investors placing their new bets at $ 80,000, ”the researchers added.
“April is going to be quite a month”, a person said responding to the tweet.
Slope: ‘Could this be the beginning of the end for Contango?’
If the price falls below the $ 80k identifier after maturity, option contracts that bet on that price will lose. In addition, bitcoin fans on Reddit say that after Friday’s due date, people should “prepare for some serious action next week and beyond”.
Recently, Bitcoin.com addressed the contango effect on bitcoin, which is the difference between spot prices and derivative market prices. Skew.com says the end of contango for bitcoin may be coming in the near future.
“As income-hungry investors adopt cryptography, could this be the beginning of the end for contouring bitcoin’s future curve? CME seems to be leading the way, ”Skew tweeted. Today’s due date should help people see where BTC prices will take in the coming weeks. Bitcoin prices of $ 80,000 are much higher than they are today, but historically BTC prices have performed well during the month of April.
What do you think of the $ 80k option strikes and the $ 6 billion bitcoin options set to expire today? Let us know what you think about this subject in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Glassnode,
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