Key Insights:
- In the latest Bitcoin news, 150,000 BTC options are set to expire on Friday with a $101,000 max pain point and a 0.61 put/call ratio.
- Bitcoin exchange large deposits on the rise and it could place more pressure on recent support.
- Arthur Hayes says Bitcoin found a local bottom near $80,000.
The last Friday of the month is almost here, which means a large number of Bitcoin options are set to expire. But just how much of an impact will the Bitcoin news or the expiry update have on the market, and how will it influence BTC price movements?
Bitcoin has no doubt been experiencing lower selling pressure this week compared to previous weeks. As a result, investors have been curious whether this could be the start of a fresh accumulation wave.
Bitcoin options liquidations could be the next trigger that gets the volumes going, especially as December rolls in. Roughly 150,000 Bitcoin options worth roughly $13 billion will expire at the end of the week.
While options may not directly affect Bitcoin, secondary effects may still play out. Expiry and liquidation may determine how investors will respond in terms of demand and supply.
Bitcoin News: Whales May Contribute to Sell Pressure
Aside from massive options expiries this week, whale activity may also continue to make headlines in the Bitcoin news column. Large order book data still demonstrated weak demand, which has been characteristic of the whale class over the last few weeks.
On-chain data indicates that large holders or whales may actually be suppressing BTC price. According to CryptoQuant, exchanges continued to receive large Bitcoin deposits this week.
Moreover, the BTC deposits on exchanges from the large holder cohort were approaching levels last seen towards the end of October. This could signal that they are preparing to sell more coins.
Incoming demand from dip buyers may thus act as exit liquidity for large holders. This could also curtail BTC’s recovery attempts, as observed in the last few days.
The large inflows into exchanges suggest that Bitcoin USD may not yet be ready for a robust recovery. But does this mean that the cryptocurrency will extend its downside below the recent lows?
Bitcoin Already Bottomed at $80,000?
Inflows into exchanges from large holder accounts suggest that Bitcoin USD may not be fully rid of the bears. However, some analysts believe that the wave of selling pressure may find support near the $80,000.
Among them is BitMex founder Arthur Hayes, who believes that BTC price may have bottomed out near $80,000 during the recent crash. His prediction was largely based on upcoming economic events such as the end of the Federal Reserve’s Quantitative Tightening.
Also, the US banks engaged in expanded lending in November. A combination of these developments highlights improving liquidity conditions, which may favor a risk-on sentiment in December.
The changing liquidity situation may favor assets such as stocks in the coming days. Moreover, Bitcoin USD continued to show signs of recovery this week despite recent outflows.
The leading cryptocurrency reclaimed the $90,000 price level in the last 24 hours, regardless of outflows from whales. This signaled accelerating accumulation at recent lows, which consequently supported the more than 10% recovery from last week’s lows.
Although the recovering sentiment may have aided BTC price performance this week, uncertainty remained high. In other words, investors were still on the fence on whether this recovery will last. Moreover, the upcoming Bitcoin options expiry could throw a wrench in the engine of market recovery.