Bitcoin tried several times to establish a mark above $40k, on January 25 European trading hours, with the dollar index trading flat ahead of the highly- emancipated United States 4th gross domestic product (GDP) data.
As of writing, BTC was trading at $40,193. However, since morning, its lowest trading price was $39,508. In the past seven days, BTC fell below the $39k mark and its lowest trading price is $38,500.
As per the Fed funds futures, traders now foresee a 50% chance of Fed rate cut in March, 80% lower than a month ago. Around $3.75 Billion worth of Bitcoin options and $2.07 Billion in Ether options are likely to expire on Friday on Deribit.
Deribit is one of the leading crypto options exchanges globally, accounting for approximately 85% of global activity.
The chief technology officer of Deribit, Luuk Strijers argued that trailers have been rolling their positions forwards from January expiry contracts to February expiry contracts.
In the crypto sector options are the form of derivatives contracts that allows a trader to buy or sell specific commodities at a set price on a future date. On the other hand, futures in cryptocurrency are contacts between two investors who bet on a cryptocurrency’s future prices.
Crypto Market and Bitcoin Price Update
The fear and greed index of the crypto market is reflecting neutrality as it is at 50, but it is important to note that the entire crypto market capitalization has been struggling since last month. The market cap declined 8.08% in the past 7 days.
Bitcoin faced several barriers in the past few days. When writing, it was trading at $39,850, with a weekly decline of 5.94% in the weekly time frame.
Before the approval of spot ETF Bitcoin’s price was flourishing and tried several times to break the resistance of $50k, however failed and got rejected from the boundary of $38k.
It is crucial to note that after the approval on the 1st day in the market, the Bitcoin ETF gathered lots and attention from traders and attracted hundreds of millions in just a couple of hours.
Ethereum (ETH), the second largest crypto in terms of market cap, shows a declining pattern. ETH lost 5.13% over the past 24 hours.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
Source: https://www.thecoinrepublic.com/2024/01/25/btc-eth-options-worth-billions-expiring-on-jan-26-report/