Bullish Bitcoin newsflow gives bulls a boost ahead of Friday's $565M options expiry
June 10, 2021. Summarized by summa-bot.
Compression ratio: 51.4%. 1 min read.
Bullish Bitcoin maneuvers from El Salvador, Victory Capital and MicroStrategy saved the day by giving bulls a much-needed boost and balancing out Friday's BTC options expiry.
On Friday, June 11, a total of $565 million in Bitcoin (BTC) options are set to expire.
This strong move saved the bulls because any level below $34,000 would have wiped 98% of the current call (buy) options.
First, MicroStrategy, a publicly-traded company that holds over $3. 2 billion worth of Bitcoin, concluded a $500 million bond offering on June 8, and the proceeds will be used to buy more BTC.
The positive newsflow continued on June 8 after Victory Capital, a $157 billion asset manager, announced plans to invest in a private fund that tracks the Nasdaq Crypto Index, 62% comprised of Bitcoin, 32% Ether (ETH), and 6% in other altcoins.
However, the right to acquire Bitcoin at $42,000 in less than 24 hours is currently worthless, so this call option is trading below $40 each.
Therefore, to better assess how traders are positioned for Friday's options expiry, analysts need to concentrate on the $33,000 to $41,000 range.
Bitcoin soared over 11% to $37,100 on June 9, causing some neutral-to-bullish call options to enter a profitable position.
With less than 24 hours until Friday's expiry, the call (buy) options up to $41,000 amount to 3,235 BTC contracts, currently worth $120 million.
On the other hand, the neutral-to-bearish put options down to $33,000 total 3,045 BTC contracts, presently valued at $113 million.
Had Bitcoin remained below $34,000, bears would have an $84 million advantage, but the sequence of positive events seems to have been just enough to salvage the situation.