$1.1B in Bitcoin options expire on Friday, but data points to a sub-$55K BTC price

$1.1B in Bitcoin options expire on Friday, but data points to a sub-$55K BTC price
© Reuters.

Bitcoin (BTC) bulls are still licking their wounds from the bloody Dec. 4 correction, which saw the price collapse from $57,000 all the way to $42,000. This 26.5% downside move caused $850 million in long BTC futures contracts to be liquidated, but more importantly, it shifted the “Fear and Greed index” to its lowest level since July 21.

Bitcoin/USD price at FTX. Source: TradingView

It is somehow strange to compare both events, as the July 21 sub-$30,000 low would have erased the entire gains in 2021. Meanwhile, the $42,000 low from Dec. 4 is still a 44% gain year-to-date. Compare this against the S&P 500, which is up 21% in 2021, and the WTI oil price, which has accrued a 41% gain.

Bitcoin options aggregate open interest for Oct. 10. Source: CoinGlass

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