Bitcoin holds $30K as bulls flaunt their advantage in Friday’s $715M BTC options expiry
Bitcoin's (BTC) 15% rally toward $30,300 between June 19 and June 21 caught most traders by surprise, triggering $125 million in liquidations of leveraged short futures contracts. Narrowing down the trigger for the rally is complicated, but some analysts point to the potential inflow of institutional investors if Blackrock’s exchange-traded fund (ETF) application gets regulatory approval.
BlackRock just filed with the SEC to create a spot #Bitcoin ETF.Given their reputation, this has the highest likelihood of happening out of all the attempts at a spot ETF so far.The institutional liquidity floodgates may finally open https://t.co/c9g2Ten1h8 pic.twitter.com/L2NmXq11gL
ARK Invest CEO and chief investment officer Cathie Wood explained the rationale for the firm’s bullishness on Bitcoin price, more specifically their $1 million target. According to Wood, even in a deflationary environment, Bitcoin can still outperform by offering a solution to the traditional financial system’s counterparty risk.
Furthermore, the negative regulatory pressure eased on June 16 after Binance exchange was able to strike a temporary agreement with the U.S. Securities and Exchange Commission (SEC) to avoid a potential asset freeze. The event further cemented Bitcoin bears’ opportunity to profit on the $715 million weekly BTC options expiry.
Bitcoin’s price dropped below $26,300 on June 10, fueling bearish bets by traders using option contracts. Such a level was only recouped on June 16, which explains why bears have concentrated their bets on Bitcoin prices trading below $27,000.
The 0.82 put-to-call ratio reflects the difference in open interest between the $415 million call (buy) options and the $300 million put (sell) options. However, the outcome
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