Bitcoin bears could face $440M loss in Friday’s options expiry
16 Mar 2023 10:18 PM
The rejection that followed Bitcoin’s rally to $26,500 may appear to be a victory for bears, but $24,750 on March 14 was the highest daily close in ni...
- Bitcoin's rejection at $26,500 may seem like a victory for bears, but it closed at $24,750 on March 14, the highest daily close in nine months.
- Bitcoin has gained 26.5% since March 10, when Silicon Valley Bank was shut down by the California Department of Financial Protection and Innovation.
- The recent price increase could be attributed to the $25 billion funding by the Federal Reserve and the United States Treasury on March 12, which reduced banks' systemic risks.
- Bitcoin bulls are well positioned to profit up to $440 million when weekly options expire on March 17.
- The downfall of Silicon Valley Bank triggered a stablecoin bank run, with Circle's USD Coin stablecoin reserves experiencing $3.3 billion in deposits.
- The $1.2 billion Bitcoin weekly options expiry on March 17 will almost certainly benefit bulls.
- A drop in commodity prices, particularly for oil, could have an impact on cryptocurrencies.
- Open interest for the March 17 options expiry is $1.2 billion, but the actual figure will be lower because bears have concentrated their bets on Bitcoin trading below $23,500.
- The most likely outcomes favor bulls by a wide margin.
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The article presents a mixed sentiment, with positive news for Bitcoin bulls and negative news for bears. The downfall of Silicon Valley Bank triggered a stablecoin bank run, but the recent price increase could be attributed to the $25 billion funding by the Federal Reserve and the United States Treasury. The most likely outcomes favor bulls by a wide margin.
What triggered the recent price increase of Bitcoin?
How much could Bitcoin bulls profit when weekly options expire on March 17?
What impact could a drop in commodity prices, particularly for oil, have on cryptocurrencies?
Why will the actual figure for the March 17 options expiry be lower than the open interest of $1.2 billion?
What are the four most likely scenarios for the March 17 options expiry based on current price action?
Silicon Valley Bank