As 47% of BTC options expire next Friday, BTC price volatility is expected
47% of Bitcoin options expire next Friday, which means BTC could be at risk of a situation that means a move.
The open interest rate for Bitcoin (BTC) options is only 5% shorter than their total term, but about half of that amount will be cut off at the end of September.
Although the current $ 1.9 billion options show that the market is healthy, it is still rare to see such a difficult focus on short-term options.
By itself, the current figures should not be considered bullish or bearish but modest interest and options are required to allow major players to participate in such markets.
There is no level of magic to be observed, but having options spread throughout the month makes trading strategies extremely difficult.
Most importantly, the future availability of stock markets helps to support local (regular) volumes.
Risk resistance at a low level
To assess whether traders are paying large premiums on BTC options, the implications of instability should be examined. Any unexpected large price movements will cause the index to rise sharply, whether positive or negative.
The volatile situation is known as an indicator of fear as it measures the average price paid in the options market. Any sudden price change often causes market makers to be less risky, which is why they want a bigger options trading premium.
There has been an unusually high correlation between BTC stocks and U.S. technology over the past six months. While it is impossible to pinpoint the cause and effect, Bitcoin traders who bet on extinction are likely to lose hope.
If it takes too long for decoupling to make the right decoupling, lower incentive traders should bet on the aggressive BTC price trend. An even more important indicator of this is a lack of trust from traders and this could open the way for significant price changes.
Unusual concentration of short-term options
Many of the right Bitcoin options are ripe for the last Friday of the month and some very short-term focus is expected due to the integrated telephone trading.
This strategy consists of purchasing BTC through local (regular) or futures markets and at the same time selling on telephone options.
The combined call is close to a steady income trading, aimed at pocketing the large selection options in the BTC market. At the expiration of the term, the trader will be terminating his positions in the private, future and options markets.
There may not be a clear explanation as to why BTC options are so focused but something similar happened back in June that lowered BTC options and opened interest rates by $ 900 million.
As of now, there are no signs of weakness in the stock market, but with Ether options standing at $ 450 million, any number below $ 1.5 billion will certainly not look desirable with Bitcoin.