As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I can’t help but feel a mix of excitement and trepidation as I watch Bitcoin break the $65,000 barrier once again. This isn’t my first rodeo – I remember the wild swings of 2017 when Bitcoin hit an all-time high of nearly $20,000, only to plummet back down to earth not long after.
For the past month, Bitcoin‘s price has exceeded $65,000 for the first time, reaching a high of $65,687 on Thursday, marking a 3.7% increase. This sudden spike occurs as we approach the expiration date of approximately $5.8 billion worth of options contracts. Some experts predict that this could lead to increased market volatility.
Chris Newhouse, the research director at Cumberland Labs, highlighted that the price of Bitcoin had previously acted as a resistance level in August and September. He noted that the current price is being retested, emphasizing that if it breaks out, it could trigger an upward trend, but if it falls below $65,000, it might cause a drop in prices.
Besides Bitcoin, other digital currencies like Dogecoin (up by 9%), Solana (up by 5%), and Avalanche (up by 6.5%) are also generating a lot of excitement recently.
Approximately one fifth of the Bitcoin option contracts currently hold value, with traders preparing for the upcoming expiration this Friday. As stated by Deribit’s CEO, Luuk Strijers, this substantial expiration might significantly influence the market due to traders adjusting their positions in response.
According to Darius Tabai, the head of Vertex, it’s expected that the market may experience fluctuations prior to expiration dates due to increased gamma hedging influence around $60,000 and $65,000 price points.
Conversely, discussions have arisen regarding the regulation of cryptocurrencies as numerous investors eagerly anticipate more defined guidelines, which could enhance the market’s stability.
Read More
Sorry. No data so far.
2024-09-27 08:38