On November 29, 2024, the cryptocurrency market will witness the expiration of Bitcoin options contracts worth approximately $13.6 billion. This event could significantly impact Bitcoin’s price, especially as it inches closer to the $100,000 milestone.
Impact of the Bitcoin Options Expiry
When a large volume of options contracts expire, the market often experiences significant price volatility as traders adjust their positions. According to data from Deribit, the “max pain” point (the price at which option holders suffer the most losses) for this expiry is $85,000. This indicates that Bitcoin’s price could retrace to this level as the contracts expire.
The Potential for Bitcoin to Hit $100,000
Currently, Bitcoin is trading around $96,601, just shy of the $100,000 milestone. Some analysts believe that traders purchasing Bitcoin call options to cover losses could push its price past the $100,000 mark.
However, others suggest that $100,000 represents a significant psychological resistance level, making a breakthrough challenging.
Bitcoin Price Predictions After the Expiry
Despite the expiration of nearly $2.7 billion in Bitcoin options on November 22, Bitcoin has maintained its upward trend toward $100,000. This suggests that the market may continue its bullish trajectory following the expiration event on November 29.
Nevertheless, investors should exercise caution and closely monitor market movements during this period.
Conclusion
The expiration of $13.6 billion in Bitcoin options on November 29, 2024, could lead to significant price volatility. While there is potential for Bitcoin to surpass $100,000, investors should prepare for possible price corrections and stay vigilant about market developments.