Bitcoins Next Big Move Could Come On Christmas Day
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On Christmas Day, around $2.3 billion worth of bitcoin futures is set to expire which could potentially trigger a volatile week in the days following throughout the market.
Skew, a crypto data provider went on Twitter earlier this week reporting that more than 100,000 bitcoin options will be expiring on Friday, Christmas Day.
For those that don’t know, option contracts will allow holders to buy and sell bitcoin at a specific price. This is otherwise known as a strike price.
This is an event that has been particularly tied with volatility. The expiry date of bitcoin option contracts is worrying for some throughout the community. Investors who are currently in profit though could decide to receive the payout and dump the cryptocurrency instead.
These events have got a history of causing bitcoin to go crazy/volatile.
Over the course of 2020, crypto derivatives trading has spiked massively. A big part of this was with the introduction of institutional investors which further pushed the exposure of bitcoin and the overall crypto market.
The bullish activity that we have seen over the course of the past month has been nothing short of amazing. Bitcoin has hit a new all-time high of $24,000+. And we have seen alternative crypto assets jump on the bandwagon and take advantage of the activity. Many people are questioning whether bitcoin will be able to keep up this momentum in 2021 or even in the coming weeks. If the Skew analysis is anything to go off, we will find out by the end of the week.
As always, before we finish it is worth saying that we are not financial advisors and this is not financial advice. Please do your own research before investing in a cryptocurrency like bitcoin.