Bitcoin reduces losses before important options expire

Source: AdobeStock / Captain

Bitcoin (BTC) price fell slightly on the past day after falling to a low of $ 40,200 yesterday through strong selling. The sale comes shortly before one of the largest Bitcoin options expiration days in 2021, on September 24th.

At 13:44 UTC, BTC has fallen 1.6% in the past 24 hours to a price of $ 43,255

However, the price has already bounced back from its overnight lows of $ 40,200 with a large bullish “wick” showing on the daily chart as evidence that dip buyers have come to bid the price higher.

After yesterday’s sale, a summary of the situation from the crypto derivatives exchange estate also gave some traders hope that the worst is already over and a recovery rally might come next.

However, despite the recovery so far, the Bitcoin market is still on the verge of impending option expirations this Friday, with nearly 70,000 BTC in options contracts on all major exchanges set to expire, according to Bybt.com.

At current prices, the expiring contracts have a value of around USD 3 billion, making them one of the largest maturity dates this year.

Large amounts of option expirations have sometimes led to increased volatility in the spot markets, although this is by no means a safe result.

But while short-term relief is already being felt in the Bitcoin market, longer-term signals based on on-chain metrics may be another cause for concern for Bitcoin holders.

According to analysis company Coin codes’ The state-of-the-network report released today, the Ratio of Market Value to Realized Value (MVRV) of Bitcoin – described as “one of the most accurate on-chain indicators for measuring BTC market cycles” – is now at around 1 .73 down after hitting a high of 1.94 as Bitcoin surged above $ 52,000.

An MVRV below 2 has “given a signal for bear territory” in the past, Coin Metrics said, without delving into what that might mean for the near future.

In both cases, Mike Novogratz, CEO of Galaxy Digital, claims he’s not nervous about the sale:

Meanwhile, the major rating agency Global S&P ratings Last night downplayed the risks of a possible default by the property developer China Evergrande, which reportedly owes more than $ 300 billion.

According to the agency’s assessment, the Chinese government will not provide China Evergrande with “direct support” unless there is a potential for “widespread contagions” that represent “systemic risks for the economy”.

“We believe that the Chinese banking sector can digest a default by Evergrande without significant disruption, although we will consider possible consequences,” said the rating agency.
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Learn more:

Bitcoin and crypto fall along with stocks on China’s evergrande spillover risks
Why Bitcoin likes a harsh environment

– Analysts urge caution as the golden cross appears on the Bitcoin chart
– Bitcoin could exceed USD 66,000 in 2021 and USD 400,000 by 2030 – ‘Panel of Experts’

Market Says “Meh” As Biggest Bitcoin Options Ever Expire
– Bullish option data is fueling speculation about a new bitcoin rally

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