{"id":280143,"date":"2021-06-21T23:00:00","date_gmt":"2021-06-21T20:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/data-shows-bitcoin-bears-dominate-fridays-2-5b-btc-options-expiry\/"},"modified":"2021-06-21T23:00:00","modified_gmt":"2021-06-21T20:00:00","slug":"data-shows-bitcoin-bears-dominate-fridays-2-5b-btc-options-expiry","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/data-shows-bitcoin-bears-dominate-fridays-2-5b-btc-options-expiry\/","title":{"rendered":"# Data shows Bitcoin bears dominate Friday&#8217;s $2.5B BTC options expiry"},"content":{"rendered":"<p>&#8220;<strong># Data shows Bitcoin bears dominate Friday&#8217;s $2.5B BTC options expiry  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) price dropped roughly 22% over the past 7 days, retesting the $31,700 area for the second time in June. The most pressing <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> for the negative performance has been China supposedly cracking down bank accounts of over-the-counter desks, according to some analysts:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">China cracking down on the bank accounts of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#bitcoin<\/a> OTC desks, this is getting serious!!!<\/p>\n<p>\u2014 Lark Davis (@TheCryptoLark) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TheCryptoLark\/status\/1406919185565847555?ref_src=twsrc%5Etfw\">June 21, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>However, as reported by Cointelegraph, Bitcoin&#8217;s hash rate dropping nearly 50% to an 8-month low could also have played a vital role in the price correction. Not even MicroStrategy&#8217;s recent $489 million purchase was enough to sustain the $35,000 support.<\/p>\n<p>The movement raised suspicions that the June 25 options and futures expiry could also be behind the move. After all, this month will potentially settle $2.5 billion worth of options and another $2 billion in futures contracts. <\/p>\n<p>Currently, the CME futures represent nearly half of the futures open interest, although historically, most investors roll over their position during the last week of trading. <\/p>\n<p>Market makers and arbitrage desks tend to carry a short futures position while simultaneously holding BTC, thus profiting from the premium to regular spot exchange markets. Meanwhile, large asset managers such as Tudor Investments carry long futures exposure.<\/p>\n<p>However, there is no gain in rolling an option contract that is already worthless. With less than five days until expiry, a right to buy Bitcoin (call) at $44,000 is trading at $20.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/e15bd36c-beca-4689-b299-a2e2cb98eaf8.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin options aggregate open interest for June 25. Source: Bybt<\/em><\/figcaption><\/figure>\n<p>The initial picture favors bulls, as the neutral-to-bullish call (buy) options contracts are 36% more present for June 25 expiry.<\/p>\n<p><strong><em>Related:\u00a0Ethereum\u2019s $1.5B options expiry on June 25 will be a make-or-break moment<\/em><\/strong><\/p>\n<p>Notice how 87% of the right to buy (call) options have been placed above $34,000. Therefore, if Bitcoin stays below that level, only $200 million worth of open interest from those neutral-to-bullish contracts will partake in the June expiry.<\/p>\n<p>Meanwhile, 46% of the protective put options have been opened above $34,000. This represents a $510 million open interest, giving those neutral-to-bearish contracts a significant advantage.<\/p>\n<p>The $310 million difference favoring bears will be reduced by $190 million if Bitcoin trades above $36,000 on June 25. On the other hand, bears can add another $140 million open interest by pressuring the price below $32,000. The potential $450 million advantage is substantial and should not be ignored.<\/p>\n<p>For the bulls, it might make sense to throw in the towel, lick their wounds, and maybe open new positions using a front spread with puts, allowing gains with no upfront cost besides margin.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/data-shows-bitcoin-bears-dominate-friday-s-2-5b-btc-options-expiry\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Data shows Bitcoin bears dominate Friday&#8217;s $2.5B BTC options expiry &#8221; Bitcoin (BTC) price dropped roughly 22% over the past 7 days, retesting the $31,700 area for the second time in June. The most pressing news for the negative performance has been China supposedly cracking down bank accounts of over-the-counter desks, according to some&#8230;<\/p>\n","protected":false},"author":1,"featured_media":280144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvZDJmY2RlMzAtZjRhNC00OWJjLTgzMjQtZjBkODg1MTU5MzU1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81209,74937,74863,74860,75012,75846,74939,4973,73785],"class_list":["post-280143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-options","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-futures","tag-market-analysis","tag-china","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/280143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=280143"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/280143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/280144"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=280143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=280143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=280143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}