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Is the $67K milestone going to be a confirmation of a structural shift in the bitcoin market?
The cryptocurrency market saw liquidations totaling over $120 million.
Today, options on Bitcoin and Ethereum valued at $2.1 billion are set to expire.
If the market remains constant over $67K, it suggests a shift in the market's structure.
Even as the market gets ready for the weekend, the price of Bitcoin (BTC) keeps showing strength. Following Wednesday's publication of the April CPI and a slew of reports suggesting that both retail and institutional investors are interested in buying Bitcoin (BTC) via exchange-traded funds (ETFs), the pioneer cryptocurrency is finishing the week on a positive note.
With increases of 10% in the last seven days, the price of Bitcoin is trading with a positive bias. It is quite an accomplishment, especially for the crypto king, to have a 2.2% increase in the last day. Worldwide, the value of all cryptocurrencies has increased by 2.8% to $2.43 trillion as altcoins have followed suit.
Due to the rise, positions worth more than $120 million have been sold off in the market. Almost $40 million is in long positions while $83 million is in short positions.
Final sales
On the other hand, today is the expiration date for options valued up to $2.1 billion in Bitcoin and Ethereum. With a put-call ratio of 0.63, options on 18,000 BTC are scheduled to expire. With a theoretical value of $1.2 billion, the highest possible pain point is $63,000.
In layman's terms, a large number of contracts involving bitcoin derivatives have expired on the same day. To purchase or sell a certain quantity of Bitcoin or Ethereum at a fixed price at a future date is the right, but not the duty, conferred by these options contracts.
When a huge number of options contracts expire, it can cause the bitcoin market to become more volatile. The expiration of contracts causes traders to either reduce their holdings or change their approach. In the near run, it may potentially affect market mood and movement.
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