Bitcoin may have lost its momentum to mount a serious bull run right after the halving, but the top coin seems to be holding its own. Still, Bitcoin has made good advances this year with a cool 30% price upswing since the start of 2020. In fact, a lot of people are still optimistic that the crypto will score big by the end of the year.
Even more so, the market is about to experience a money influx due to the $1 billion in Bitcoin options market expected to expire this week which consists almost entirely of call options.
Currently, BTC trades at around $9,400 after backing down from the $10,000 resistance level a few weeks ago. However, the expected influx could well change things for the better.
What Could Happen?
The over 100,000 BTC worth close to $1 billion accounts to close to 70% of the crypto’s open market, and the expected expiry of these contracts on June 26 could result in high price volatility, something that experts expect to prop up prices.
Indeed, that’s already evident from the increasingly open market interest. In the last 2 months, Bitcoin’s open market interest has doubled to clock $1.3 billion. Derivative exchanges, especially Deribit and other regulated platforms like LedgerX and CME, have been more active lately.
Another factor affecting the market is the increasing spread of the Covid-19. The stock market is already feeling the heat, and investors selling off their equity holdings. The Covid-19 situation in China, Europe, and the US doesn’t exactly inspire investor confidence, and this uncertainty, if it continues, could spill over and hit the Bitcoin market in a negative way.
HODLers Are Still Game
However, there are those who still have good faith in the power of the Bitcoin. People owning Bitcoin are now more reluctant to sell off as they see the crypto as a good store of value amid a global economic crisis and inflation.
Many have actually likened Bitcoin to a “Digital Gold,” terming a viable safe haven. In this case, the increasing scarcity could lead to a spike in Bitcoin prices.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of ZyCrypto.
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