Bitcoin Faces Volatility Risk Ahead of $10 Billion Options Expiry
Summary
- Bitcoin fell to $58,131, its lowest level in 21 months.
- The market faces a potential increase in volatility ahead of an options expiry worth about $10 billion on Deribit.
- The simultaneous unwinding of existing positions and establishment of new ones could increase market volatility.
Forecast Trend Report by Period
Bitcoin could see bigger price swings ahead of an options expiry worth about $10 billion after the token fell to its lowest level in 21 months.
Forbes reported on June 25 that Bitcoin dropped as low as $58,131 intraday, its weakest level since September last year.
Options worth about $10 billion are due to expire on June 27 Korea time on Deribit, a global digital-asset options exchange, Forbes said. The simultaneous unwinding of existing positions and establishment of new ones could amplify market volatility.
Meanwhile, Coatue Management founder Philippe Laffont said he prefers AI-related assets to Bitcoin, adding that SpaceX and artificial intelligence-related companies are more likely to deliver higher returns over the next 20 years.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.