At $40,000 Mark Bitcoin Price to Benefit Bulls in $1.7B Options Expiry

The upcoming expiry of 42,850 Bitcoin (BTC) options contracts could greatly benefit investors, given the flagship cryptocurrency’s spot price. Estimated to be worth $1.7 billion, the option expiry will receive a boost from the positive market sentiment around BTC and its $40,000 price tag. This has been an eventful week for the Bitcoin community as a series of developments pushed the biggest crypto out of its lull and forced short-sellers to bail from their positions.

The Impact of Bitcoin Surge On Options Market

On 28 July, Bitcoin finally broke past $40,000 after stagnating for months at the lower end of the $35,000-$30,000 range. This upswing was largely propelled by the rumor that Amazon would integrate BTC and other altcoins into its payments options. But even after e-commerce titan denied the speculations, the currency continued to maintain its gains. According to CoinMarketCap data,  BTC was trading at $39, 816 at the time of writing and is up 22.53% in the last 7 days.

The options market suggests that Bitcoin bulls stand to gain a lot from holding on to the $40,000 level. Presently, 87% of the neutral-to-bearish call options are at $39,000 and lower. If BTC dips below $39K on July 30, put options worth $105 million would become available in the market

Elsewhere, neutral-to-bullish call options below $39,000 have $320 million invested in them. They hold an advantage of $215 million and if Bitcoin bulls hold the prices above $40K at the time of expiry, their lead would further expand by $140 million. Therefore, it seems reasonable to push the price beyond the suggested level until the Deribit expiry.

The Contribution of BTC Futures Expiry

Bitcoin futures contracts worth $650 million would also expire concurrently with the options on Friday. However, this amount will hinge on CME’s $455 million as merchants may close their position before the expiration. The futures expiry is scheduled for 3:00 pm UTC.

Altogether, bulls appear in firm control with the options market data favoring their side in the foreseeable future.