Tomorrow the Bitcoin traders would be looking at the $104 million advantage. This advantage would be led by the upcoming $1.1 billion options expiry that would be neutralized after 38 hours. However, the market bulls are hoping for a $60K ranking to witness a favorable weekend close. The leading coin has yet again recovered from its latest dip of $53K.
The bears have lost the chance to take advantage of the $200 million open interest that would be defused alongside the $1.1 billion options expiry on May 7th, 2021. The current recovery of the flagship cryptocurrency back to $57,000 has been reinforced by a partnership between Fidelity National Information Services (FIS) and New Digital Investment Group (NYDIG). The venture is directed towards introducing a fintech infrastructure to aid American banks in offering crypto trading.
Crypto is Moving into Conventional Banking Sectors
A recent survey report conducted by Mastercard shows that 40% of the participants of the program prefer to use crypto payment gateways for the span of the next 12 months. The study conducted on the 15,500 select credit card users also showed that 77% of millennials wish to gain access to the knowledge base for cryptocurrency trading. Head of bank solutions at NYDIG, Patrick Sells, told CNBC that a sizeable number of banks had flocked around to get acquainted with the crypto trading program.
The Bitcoin bulls are expected to have a better chance in the upcoming options expiration expedition. The holders of options contracts can settle the premium directly if they wish to avoid the risk of getting coerced into liquidation. If the traders respond to explore call options, they could get upside price protection. In case the investors wish to lean towards put (sell) options, they would experience the opposite impact.
The open interest for call options at $60K would be available for 4,950 contracts. At the $64K mark, another 1620 contracts would be added to call options providing an increment of $93 million in open interests. For the $54K position, the neutral to bearish put options can be expected to boot 3,150 contracts. Further down the line, the put options contracts would add another 2,800 in case the price is $50K.
The $104 million advantage for the bulls could reduce dramatically if the price ticker travels below $60K. The biggest number of call options, i.e., 1680 contracts, are available at this level. The open interest rate ranges from $93 million to $161 million, depending on the closing price of the Bitcoin at the weekend close.