- Bitcoin makes another upward move reaching an intraday high of just over $11,800.
- The Bitcoin options market is due for another massive expiry later this month.
After several days of downward pressure, Bitcoin has made a significant move upwards, reaching an intraday high of just over $11,800. The move also pushed up prices of other cryptocurrencies like Ethereum, which is currently trading hands at $382.
Bitcoin’s sudden rise has resulted in a wave of short liquidations. According to cryptometer.io, BitMEX alone has seen over $18 million in crypto short liquidations in the last 24-hours.
Looming Options Expiry
The Bitcoin options market is due for a colossal expiry this month, with over 70,000 Bitcoin worth of options due to expire by the end of this month, according to data by Skew. This comes after last month’s massive 80,000 Bitcoin expiry.
Buying Bitcoin options offer traders the choice to purchase or sell Bitcoin at a predetermined price on or before the options expiry date. When purchasing options, traders can choose between calls and puts.
Bitcoin calls allow option holders to purchase Bitcoin at a specific price, also known as the strike price. If a trader purchases a call option and the price of Bitcoin rises past the strike price, the trader will be able to net the difference between the spot and strike price.
Bitcoin puts allow traders to do the opposite. If a trader purchases a put and the price of Bitcoin falls below the strike price, the trader will be able to sell Bitcoin at the strike price and net the difference between the spot price.
Traders pay a specific price for the option, also known as the option premium. If the price action does not follow what the trader anticipated, they can decide not to exercise the option, therefore minimizing their downside to just the premium they paid for the option.
Disclaimer: Content displayed on thecryptoassociate.com is not investment advice. Investors should do their own research before investing in digital assets or anything displayed on this site. The Crypto Associate does not recommend trading any sort of investment in cryptocurrencies and digital assets. The Crypto Associate is not responsible for any losses incurred due to the buying or selling of cryptocurrencies displayed on this site. All content is for informational purposes only. The Crypto Associate does not endorse, affiliate or represent any third-party links including advertisements. The Crypto Associate participates in affiliate marketing. Read the full disclaimer