Over the last few days, Bitcoin and crypto prices dropped as concerns seized global markets that the collapse of Evergrande, a troubled China property developer, might push a financial meltdown.
Over the last three days, the bitcoin price has fallen by more than 11%. Other major cryptocurrencies such as Cardano, ethereum, BNB, XRP, and Solana. Those assets experienced a massive drop after making huge gains.
At the moment, investors decided to keep an eye on the $3.5 billion worth of bitcoin options that have an expiration date this Friday. It is one of the greatest options that expire this year.
According to data from Skew (cryptocurrency analytics provider) and ABMCrypto (crypto news site), Bitcoin options deals worth almost 80,000 bitcoin, equal to nearly $3.5 billion, will expire at the end of this week. It allows investors to exchange assets at a specific price in a set period.
Experts Commenting on The Matter
Trading data show that stockholders feel uncertain about $3.5 billion worth of bitcoin options expiry. Currently, they are more interested in call options than input options.
However, the bitcoin price crash over the last few weeks means many bullish records will be liquidated. Some market watchmen also predicted that the bitcoin price might sink lower than this.
The chief executive of Yield App (decentralized finance investment platform), Tim Frost, said in emailed comments that Bitcoin lost support at the $45,000 and tests its $38,000. He added that if it falls, they can expect a necessary change to come.
Experts also say that they expect the price of bitcoin and other cryptocurrencies (ethereum, Cardano, BNB, XRP, and Solana) to stay under pressure at the end of this week because of the risk-off sentiment. Increasing concerns about the possible Evergrande failure produced this sentiment.