Bullish Bitcoin news gave bulls a boost before Friday’s $565 million option expires


On Friday, June 11, Bitcoin totaled 565 million U.S. dollars (Bitcoin) Option is set to expire. This is important because the past few weeks have been a huge deception for the bulls. After all, it is difficult for the price to maintain the $33,000 support level.

However, unexpected bullish events led to a rise of 18.5% from the low of $31,000 on June 8 to $38,491 today. This strong move saved the bulls because any level below $34,000 would erase 98% of the current call (buy) options.

Who saved this day?

First, MicroStrategy, a public company holding more than 3.2 billion U.S. dollars worth of bitcoin, Completed USD 500 million bond issuance on June 8, The proceeds will be used to purchase more BTC.

on the same day, El Salvador’s Legislative Assembly approves Bitcoin as legal tender domestic. President Nayib Bukele stated that all businesses must accept Bitcoin. In addition, the government announced that it will eventually hold USD 150 million worth of BTC in the trust fund.

On June 8, at Victory Capital, a US$157 billion asset management company Announced plans to invest in private equity funds tracking the Nasdaq crypto index, 62% is made up of Bitcoin and 32% is made up of Ether (Ethereum), and 6% of other altcoins.

The bulls or bears have the upper hand?

Summarize the Bitcoin options on June 11. Source: Bybt

The initial situation is slightly favourable for shorts because the call option ratio is 0.93, even though this indicator has the same valuation for every option. However, the right to acquire Bitcoin for $42,000 in less than 24 hours is currently worthless, so the call option is trading at less than $40.

related: Report says El Salvador’s Bitcoin surge is currently failing to attract smart money

Neutral put put options of $30,000 and below have a similar effect. There is no benefit for the holder to extend it in the next few weeks, because these contracts also become worthless. Therefore, in order to better assess traders’ positioning for Friday option expiration, analysts need to focus on the range of $33,000 to $41,000.

Bitcoin surged by more than 11% to $37,100 on June 9th, causing some neutral to bullish call options to enter profitable positions. Less than 24 hours before expiration on Friday, there are 3,235 BTC contracts worth up to 41,000 US dollars in call (buy) options, which are currently worth 120 million US dollars.

On the other hand, neutral-to-put put options fell to USD 33,000, a total of 3,045 BTC contracts, currently valued at USD 113 million. Therefore, the expiry date of both parties on Friday is actually balanced.

If Bitcoin stays below $34,000, the shorts will have an advantage of $84 million, but a series of positive events seems to be enough to save the situation.

Although there is no guarantee that prices will remain the same, at least the motivations of both parties to pressure prices are currently balanced.

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