Bitcoin options expire – breakout in sight? The market update.

Today, Bitcoin options expire in the billions – is there any movement in the Bitcoin exchange rate? At least in terms of user numbers, the crypto market can complain about anything but a standstill. The market update.

The USD 40,000 mark is not yet in the dry towels. At the time of going to press, Bitcoin was trading at USD 39,812, almost unchanged in a 24-hour comparison. The clear recovery of Amazon’s Bitcoin denials continues to give bulls reason to be optimistic that the “40k” can soon be overcome on a sustainable basis. Same goes for tech support at $ 39,240 that hasn’t even been touched in the past 24 hours.


Bitcoin options expire – breakout in sight?

The trading range has tightened again since July 29, with BTC hovering between $ 39,454 and a 24-hour high of $ 40,655. Today is an important day for traders of Bitcoin options: Like every last Friday of the month, Bitcoin options are expiring again on relevant trading venues. Above all on the unregulated Deribit exchange, price bets with a total volume of around 1.6 billion US dollars run out today.

Bitcoin options on Deribitwhich expire on July 30th.

As the option’s expiration date approaches, option traders attempt to buy or sell BTC to drive the price towards a closing price that is profitable to them. Therefore, the narrow trading range could potentially widen today.

Holders of options contracts have the right to buy (call option) or sell (put option) an underlying asset (here: BTC) up to the end of the contract period at a predetermined price. With a call option, the buyer speculates that the price of the underlying asset will rise. Conversely, buyers of a put option hope for falling prices.

The ratio of call to put options can provide an indication of investor sentiment. If the ratio is 1: 1 (which corresponds to a call / put ratio of 1), this means that calls and puts are balanced. However, because there tend to be more calls than puts for an underlying asset, 0.7 is not used as the starting point for determining market sentiment. If the value is higher, this can signal a bearish sentiment, while the opposite case indicates a more optimistic mood in the market. For the contracts on Deribit that expire today, the pull / call ratio is 0.83 and thus signals a slightly bearish sentiment for July.

Thank you, Dogecoin: number of crypto investors has increased dramatically

Because of their complexity, options are considered riskier investment vehicles and are therefore more suitable for more experienced traders than for the broader mass of investors. But how wide is this mass actually? The crypto broker Crypto.com dealt with this question in its July report. The result is quite optimistic. Based on the analysis of on-chain data, the number of crypto users has increased massively in the past few months, according to Crypto.com. In June it reached an impressive 221 million. The number doubled within four months. While Bitcoin in particular attracted new investors to the crypto space at the beginning of the year, the latest increases in the number of users are mainly due to the Altcoins.

Although bitcoin fueled growth in January and February, it was the adoption of altcoins that led it. Adoption in May led to a massive increase in crypto users, from 143 million at the end of April to 221 million in June. The acceptance of altcoins was probably spurred by the influx of new users who were interested in tokens such as Shiba Token (SHIB) and Dogecoin (DOGE), among others,

says Crypto.com. We say: Welcome!