In a significant turn of events, Bitcoin’s volatility has become the focal point today after reaching the historic $100,000 price milestone. The leading cryptocurrency sent shockwaves through the trading community during Asian trading hours when it experienced a sudden and sharp dip, briefly approaching $90,000 on Binance.
This unforeseen decline occurred around 4:30 IST, just a day after BTC managed to cross the highly anticipated $100K mark, a milestone that had set the crypto space abuzz.
As of now, Bitcoin is trading at $97,877.30, showing a 4.75% decrease in the last 24 hours. However, the trading volume has been substantial, reaching $132.58 billion, an increase of 21.92%. The market activity clearly indicates the intense struggle around the crucial $100K level, which has proven to be a formidable resistance point.
The drastic price fluctuation underlines the impact of market forces, especially on Fridays when Bitcoin options expire. With billions of dollars in contracts being settled weekly, these expirations frequently result in increased volatility as traders reposition themselves.
The plunge also reflects the changing sentiment during Asian trading hours, a period when lower liquidity can exacerbate rapid price movements. Nevertheless, Bitcoin’s market capitalization has remained robust at $1.94 trillion, attesting to the asset’s tenacity in the face of extreme price swings.
Deribit data reveals that the total notional value of Bitcoin options set to expire this Friday is approximately $2.3 billion. The data indicates a Put/Call ratio of 0.71, with traders adopting a bullish stance as they have placed over 28,491 BTC in Call options and a total of 20,175 BTC in Put options in the past 24 hours.
The current put/call ratio implies that more traders are anticipating an upward movement in BTC’s price compared to short sellers. The max pain price for today’s expiration is $97,000, a price range that BTC is likely to avoid until the start of the U.S. trading session.
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