On Friday, June 11, a total of $ 565 million in Bitcoin (BTC) options will expire. This is significant because the last few weeks have been a massive deception for the bulls. After all, the price was struggling to hold the $ 33,000 support.
However, an unexpected bullish turn of events led to an 18.5% rise from the low of $ 31,000 on June 8 to $ 38,491 today. This strong move saved the bulls because any level below $ 34,000 would have eliminated 98% of the current call options.
Who saved the day?
First, MicroStrategy, a publicly traded company that owns more than $ 3.2 billion in Bitcoin, concluded a $ 500 million bond offering on June 8, and the proceeds will be used to buy more BTC.
On the same day, the Legislative Assembly of El Salvador approved Bitcoin as legal tender in the country. President Nayib Bukele stated that accepting Bitcoin would be mandatory for all businesses. Additionally, the government announced that it would eventually hold $ 150 million worth of BTC in a trust fund.
The positive news flow 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.
Do the bulls or bears have the upper hand?
The initial picture slightly favors the bears because the call-put ratio stands at 0.93, although this indicator values all options equally. However, the right to acquire Bitcoin at $ 42,000 in less than 24 hours is currently worthless, which is why this call option is trading below $ 40 each.
Related: Report Says El Salvador’s Bitcoin Pump Failed To Attract Smart Money, For Now
There is a similar effect for bearish neutral put options at $ 30,000 and below. Holders have no benefit in renewing it over the next few weeks because these contracts are also worthless. Therefore, to better assess how traders are positioned for Friday’s options expiration, analysts should focus on the $ 33,000 to $ 41,000 range.
Bitcoin soared more than 11% to $ 37,100 on June 9, prompting some neutral to bullish call options to enter a profitable position. With less than 24 hours until expiration on Friday, call options of up to $ 41,000 amount to 3,235 BTC contracts, currently worth $ 120 million.
On the other hand, neutral put options to bears up to $ 33,000 total 3,045 BTC contracts, currently valued at $ 113 million. Therefore, both sides are practically balanced by Friday’s expiration.
If Bitcoin had stayed below $ 34,000, the bears would have a $ 84 million lead, but the sequence of positive events appears to have been enough to salvage the situation.
While there are no guarantees that the price will hold, at least the incentives for both parties to push the price are currently balanced.
The views and opinions expressed here are solely those of the Author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.