Cryptocurrency News

Bitcoin bears dominate Friday’s $ 2.1B BTC option with a gain of $ 585M.


Total 53,400 bitcoins (B T c) Options are set to expire on Friday, May 28. At first sight, bulls are in favor of neutral-to-bullish derivatives at a put (sell) option ratio of 1.32 to an open interest call (buy) of $ 2.1 billion.

However, after Bitcoin fell 33% in May, BTC’s right to acquire $ 46,000 and more is essentially worthless as there is less than 38 hours left before expiration.

Bitcoin Price in Coinbase, USD. Source: Trading View

On May 20, Cointegraph reported That “May 28 will be no different with an open interest of $ 1.95 billion. Although calling it seems premature, bears will continue to pressurize the market, given that almost no one at $ 38,000 or less for next week Call is not an option. “

On May 20, after a brief retreat above $ 42,000, bitcoin entered another correction after a Chinese government statement “Action on Bitcoin Mining and Trading Practices, And prevent the transmission of personal risk altogether. “

On 23 May, The Huobi Exchange reportedly suspended futures trading There is more devastation in mainland China and pushing bitcoin below $ 32,000.

Beards gained after last week’s option ended

As expected, the bears continued to benefit from the previous week and are still able to keep the bitcoin price below $ 42,000. For neutral-to-bullish call options, there is not much benefit to roll into a losing position until next week, so the Bulls will face a tough fight at the end of May 28.

Last week’s expiry gains made it possible for bears to place bets on the remaining bitcoin prices below $ 65,000 or $ 50,000.

Bitcoin May 28 Options Total Open Interest. Source: Bybt

Note how the only 2,550 BTC call options are at $ 42,000 or less, which is just 8% of the outstanding balance. This notional is equivalent to $ 100 million in open interest. As stated earlier, call (buy) options at $ 4,000 and more are already useless.

Meanwhile, the bears bear another home run, as most bets were made at $ 36,000 and above. Above such levels, the 17,600 BTC put (sell) options represent open interest of $ 685 million, giving neutral-to-bearish derivatives a profit of $ 585 million.

It is worth noting that BTC’s regular spot exchange volume is trading at more than $ 10 billion per day. However, the fact that futures and options expire simultaneously can increase volatility.

Keep in mind that buyers and sellers of futures contracts are matched at all times. Thus, trying to predict which side will exert more pressure is a fruitless effort.

Deribit, OKEx, and Bit.com will expire on May 28 at 8:00 AM UTC. CME futures and options occur a little later in the day at 3:00 PM UTC.

The views and opinions expressed here are only those of Author And do not necessarily reflect the views of Cointegraf. Every investment and business move involves risk. You should do your research on your own while making the decision.