Bitcoin braces for $ 6 billion earthquake as crypto price crash hits Ethereum, BNB, Solana, Cardano and XRP


Bitcoin and cryptocurrency prices fell this week, wiping out over $ 200 billion in value from the combined crypto market, despite some bold bitcoin price predictions.

Subscribe now to Forbes CryptoAsset & Blockchain Advisor and discover new NFT and crypto blockbusters ready to earn 1000%

The price of bitcoin has fallen about 6% since Monday, from around $ 52,000 per bitcoin to less than $ 46,000 before recovering slightly. Meanwhile, other major cryptocurrencies, including Binance’s ethereum, BNB, solana, cardano, and XRP, also fell, with XRP losing nearly 20% of its value over the past year. last week.

Now, bitcoin traders are poised to close over $ 6 billion worth of options contracts that will expire on New Years Eve, one of the most important options expiring this year that could potentially fuel price volatility.

sign up now for free CryptoCodex—A daily newsletter for the crypto-curious. Help you understand the world of bitcoin and crypto, every day of the week

MORE FORBESElon Musk Reveals Theory of Bitcoin Creator Satoshi Nakamoto, Admits He Doesn’t Get Ethereum, Issues Dogecoin Mars Prediction Amid Crypto Price Collapse

It is believed that the large expiration of bitcoin options could trigger price volatility, with previous large expirations attracting the attention of investors, with analysts pointing to the expiration as a cause for concern among already nervous investors who might choose to opt out. double the risky bets or relax. their positions.

The price of bitcoin is currently down just over 30% from its all-time high in November. While Ethereum, the second largest cryptocurrency after bitcoin, is doing less badly with a 20% drop from its peak, other smaller cryptocurrencies including BNB, solana, Binance’s cardano and XRP saw larger declines.

While Bitcoin’s overall trading volumes were held constant, a total of 129,800 options contracts (worth just over $ 6 billion) are expected to expire on December 31, which should fuel sentiment general short-term mistrust, “Adrian Kenny, senior salesperson at UK-based digital asset broker GlobalBlock, wrote in a note this week.

Around 130,000 bitcoin options contracts – bets on the future price of bitcoin that allow traders to buy or sell the cryptocurrency at a specified price within a specified time frame – are expected to expire on Friday, according to Skew data reported for the first time by Counter.

Bitcoin is believed to have a tendency to move towards the so-called maximum pain point in the lead-up to options expiration, followed by a strong directional move a few days after settlement due to traders pushing the spot price. closer to the strike price at which the highest number of open option contracts expire worthless, creating maximum losses (maximum pain) for option buyers. The maximum pain point for the expiration of New Years Eve options is $ 48,000, according to data first reported by Counter from Cayman Islands-based crypto financial services company Blofin.

Meanwhile, other market watchers nervously considering a drop in the price of bitcoin, ethereum, BNB, solana, cardano and XRP from Binance reported several crypto exchanges banning users from China on Friday at the aftermath of the country’s latest crackdown.

CryptoCodex—A free daily newsletter for crypto-curious people

MORE FORBESBitcoin’s Biggest Bull Makes Wild $ 6 Million Price Prediction As Ethereum Rivals Make Huge Gains

“The recent Bitcoin downturn came as the year draws to a close and several cryptocurrency exchanges prepare to implement a ban on users from China,” said Joe DiPasquale, general manager of bitcoin and crypto hedge fund BitBull Capital, in comments sent via email.

“Selling pressure has grown ahead of this ban as Chinese users look to sell cryptos and convert them to fiat before the December 31 deadline. We can expect relief for the new year and a possible recovery. However, the sustainability of any recovery will depend on market sentiment and the underlying dynamics at the moment. “

In September, one of the largest bitcoin and crypto exchanges in China, Huobi, said it was working until December 31, 2021 to “remove existing Chinese user accounts” after a group of powerful Chinese government agencies issued a stern trade warning.

News of China’s latest crypto crackdown brought the bitcoin and crypto market down in the spring, with the ban forcing China-based crypto miners – who use powerful computers to secure blockchain networks in exchange. of freshly minted coins – to scatter around the world.


Comments are closed.