- Bitcoin and Ethereum options expired today.
- The worth of both the cryptos are down 7.6% and 8% after the options expire.
- Bitcoin and Ethereum associated $3.8B in options contracts expired.
Bitcoin and Ethereum are two largest digital assets in the crypto market. Both the cryptos, Options contracts expired today. The choices expire, resulting in decreasing the worth of both BTC and ETH. Notably, 7.6% and 8% of price values dropped in the past day. Moreover, Bitcoin and Ethereum tank as $3.8 Billion in Options Expire.
Further, Bitcoin and Ethereum investors purchase these cryptos at a sure worth in the longer term. But when the options are set to expire, the market is unpredictable as it can raise the price or drop off. Additionally, in options contracts, traders are not obliged to buy the asset once the contract expires. This results in the crypto market to stay bearish.
Moreover, in overall, 83,700 BTC (worth $2.6 billion) and 685,000 in Ethereum (roughly $1.2 billion) expired in one day. With which both the crypto currencies are currently struggling due to more traders opted to sell.
CryptoQuant CEO Ki Young Ju shares,
“I think it’s plausible [it is causing volatility] since it’s the largest ever options expiry [for Ethereum].”
In addition, he comments that this is proof of a bearish market, mainly Ethereum supply across all exchanges steadily increasing, indicating investors are perhaps ready for a sell-off.
Reasons for current bearish market
Significantly, the price of Bitcoin is fluctuating and drops below $30,000 for the first time in Q1,2021. Additionally, ETH price also fell below $2000. The real-reason behind this fall in crypto prices is due to China’s ban on crypto payments and crypto-related business.
More so, NFT Analyst for Quantum Economics shared that the drop of prices can be more of technical selling pressures which affects the market. Along with this, a crypto analyst Alex Kruger comments today’s crash was likely based on the expiration of the options.
Therefore, crypto analysts suggest that the crypto traders and investors remain hectic in upcoming weeks.
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