Bitcoin touched its lowest level in more than two weeks as market traders adopted a defensive stance following the largest options expiry of the year.
$Bitcoin (BTC.CC)$ Touched a more-than-two-week low as market traders shifted to a defensive stance following the largest options expiration of the year.
Measured by open interest, approximately $14 billion worth of Bitcoin options contracts expired this Friday. This quarterly settlement comes amid mixed market signals regarding whether the nearly month-long conflict in the Middle East will lead to a ceasefire.
Griffin Ardern, co-founder of the multi-asset management firm Primal Fund, stated that based on traders' positions, the market appears to be betting on prolonged conflict, potential stagflation risks, and 'forced interest rate hikes,' which has significantly fueled bearish sentiment.
According to data compiled by Deribit, the highest concentration of open interest is currently in put options with a strike price of $60,000. Traders typically hedge against downside risk by holding put options, which grant the right to sell the underlying asset at a predetermined price. Over the past 24 hours, the put-to-call ratio for Bitcoin rose to 1.3, indicating a significant increase in demand for downside protection ahead of the weekend.
Bitcoin plunged over 4% during trading, hitting a low of $66,162, the lowest level since March 9. Recently, this mainstream cryptocurrency has consistently fluctuated within the range of $60,000 to $75,000, far below its historical high of approximately $126,000 prior to the market-wide crash in October last year.
Pratik Kala, portfolio manager at digital asset hedge fund Apollo Crypto, commented: 'With the expiration of options now out of the way, the anchoring effect on prices has dissipated, and the market is beginning to reveal its true trajectory.'
Editor/Doris