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47% of the Bitcoin contract volume will expire this Friday. Will there be any changes in the market?
Recently, the price of Bitcoin has been hovering above US$10,000, and the US$11,000 is difficult to pass. The DeFi market is cold. After Friday’s contract expires, how will the market go?
In essence, the Bitcoin market welcomes market volatility, and at the beginning of the week, the price of BTC dropped sharply from $10,980 to $10,286. The rapid depreciation of Bitcoin is the result of strong market recovery efforts in the previous week.
As Bitcoin finally got rid of its shackles on September 14, its value was elevated and reached $11,183 on September 19. This is the first time this month that the value of the largest cryptocurrency BTC has reached such a high level. However, it could not withstand the resistance of this level and eventually collapsed.
According to data from Glassnode, while the market is recovering, the three indexes of Bitcoin’s network health, liquidity and sentiment have all risen, while the fundamentals on the chain are gaining momentum.
Bitcoin’s overall network index has strengthened again, which not only increases the number of BTC transactions on the chain, but also results from the increase in the supply and accumulation of stablecoins. As more BTC addresses were created, the network operation status increased by 16%, and the transaction and transaction liquidity also soared.
As the price of BTC has risen, investor sentiment and savings behavior have also risen. The price increase prompted traders to obtain more bitcoins, which led to the previous reluctance to sell in the market. However, Monday’s decline may have hurt some traders, except for those who expected the impact of the Dow Jones futures expiration on Monday morning.
Since the Black Thursday event in March, the correlation between digital gold and the stock market has remained strong, although this was hit between September 7 and September 9, when the price of BTC fell to $10,000 Below, but with the rebound of the stock market, Bitcoin has grown almost at the same time, which has also witnessed a similar trend.
Since 47% of the orders in existing BTC contracts will expire this Friday, traders may also need to pay close attention to stock market trends.
However, according to the views of some investors, the results currently shown in the options market suggest that the upcoming contract expiration may become an irrelevant matter. Supply has fallen to its lowest point in a month, and few traders need to settle their positions.
At the same time, given the high trading volume of institutional investors, Bitcoin may not be as fragile as people think before the previous contract expires. Since August 31, the trading volume has been high. If this type of trading volume is maintained until Friday, the expiration of huge contracts may become a dumb gun.
However, even if the Bitcoin price does fall after expiration, given the active trading behavior in the market, the recovery after the fall may be faster than expected.