Bitcoin may have lost its momentum to ride a serious bullfight after halving but the higher currency seems to hold. Still, Bitcoin has made good progress this year with a 30% price hike since the start of 2020. In fact, many people are still optimistic that the cryptocurrency will score high by the end of the year.
Furthermore, the market is about to experience an influx of money due to the $ 1 billion in the Bitcoin options market due this week, which consists almost exclusively of call options.
BTC is currently trading at around $ 9,300 after retreating from the $ 10,000 resistance level a few weeks ago. However, the expected influx could well change things for the better.
What could happen?
The more than 100,000 BTC with a value close to accounts of $ 1 billion for about 70% of the cryptocurrency open market, and the expected expiration of these contracts on June 26 could lead to high price volatility, something that experts expect to increase prices.
In fact, that is already evident from the growing interest in the open market. In the past 2 months, Bitcoin's open market interest has doubled to record $ 1.3 billion. Derivative exchanges, especially Deribit and other regulated platforms like LedgerX and CME, have been more active lately.
Another factor affecting the market is the increasing diffusion of Covid-19. The stock market is already feeling the heat, and investors are selling their equity stakes. The situation of Covid-19 in China, Europe and the USA. It doesn't exactly inspire investor confidence, and this uncertainty, if it continues, could spread and affect the Bitcoin market in a negative way.
The HODLers are still in the game
However, there are those who still have good faith in the power of Bitcoin. People Bitcoin owners are now more reluctant to sell, as they see cryptocurrency as a good store of value in the midst of a global economic crisis and inflation.
Many have actually compared Bitcoin to "digital gold", which is called a viable safe haven. In this case, the growing shortage could lead to an increase in Bitcoin prices.