For a few days now, uncertainty has weighed on the cryptocurrency market. The situation is weakening for Bitcoin (BTC), especially with the expiration of $ 925 million in options on Friday. The BTC having started a descent towards the 10,000 $, this notably caused a rapid and sharp fall of the vast majority of altcoins.
Overnight, the cryptocurrency market saw significant movements, led by a fall in Bitcoin (BTC) of more than 3%, from $ 10,500 to nearly $ 10,100 :
As we mentioned in our technical analysis of September 21 , the daily Bitcoin situation had already been quite fragile for a few days. Moreover, the previous rebound to $ 10,000 did not show any significant signs of recovery, which is confirmed today.
Expiration massive des options Bitcoin
This Friday, September 25, 915 million dollars of Bitcoin options will expire. As a reminder, an option contract means that an investor pays for the right to buy or sell an asset on a predefined date.
Knowing that this contract does not require a purchase and that most of the current options are set between $ 11,000 and $ 12,000, investors have no interest in rolling over their position for the next term.
This is because when the deadline approaches, call options 10% or more above the current price of Bitcoin are often considered worthless:
Expiration Options Bitcoin
Thus, it is likely that the buying pressure will decrease in the days to come, which will not help Bitcoin to resist above $ 10,000 for very long . Yet, during previous massive expirations of this type, their impact had not been so great on the price of BTC .
On OKEx and Deribit , which are among the largest Bitcoin options markets, they will expire at 10:00 a.m. KST . On the CME side , the options will expire at 5:00 p.m. Paris time . These two periods will therefore be important to watch, although it is likely that the impact of the expiration will be negligible.
Altcoins take the hit
More impressive than this slight descent of Bitcoin, the fall of altcoins . After several days of steady decline, most altcoins have returned to their pre-general rise level in early summer.
The impact of this correction is particularly impressive for two major altcoins the XTZ of Tezos and L I NK Chainlink . At the end of July, carried by the craze for DeFi , the LINK had touched the $ 20.
After having reached the top 5 of the most capitalized cryptocurrencies, even ahead of Bitcoin Cash , the LINK is now out of the top 10. For 6 weeks, the famous altcoin has suffered and is now trading at nearly $ 8.25 .
That night, the LINK hovered around $ 7 , a price he hadn’t known for nearly 2 months. Thus, in 38 days, the price of the LINK has fallen by $ 12.8 , or nearly 64% .
Despite the still frantic pace at which the Chainlink project is integrating into blockchain protocols and applications, this is not enough to stop the fall of its native token: