In addition to the Mt. Gox situation, the German government sold off its remaining Bitcoin holdings earlier this month, which added to the market’s volatility. The bankrupt trading firm Genesis Trading also contributed to the selling pressure by moving 14,000 BTC into exchanges just days before the expiry. Currently, Genesis Trading’s wallets still hold over 32,000 BTC, as a court has ordered the company to repay $2 billion to its investors. These events have collectively pushed Bitcoin’s price below $55,000 recently, with a resistance point at $68,000 that has proven difficult to breach.
As the expiry date approaches, bullish traders hope Bitcoin will manage to maintain a support level around $66,000, allowing for the exercising of call options at $68,000 and $70,000. Despite the apparent bullish sentiment reflected in the options market, the open interest data shows a 0.62 put-to-call ratio, suggesting a lean towards call options. However, this can be misleading without considering the expected price movements. If Bitcoin remains under $67,000 by the expiry, a limited number of call options worth around $560 million will materialize. Traders are advised to do their own research, as investment and trading always carry inherent risks.
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