On Friday, August 6, Bitcoin was secured above $40,000 which gave the bulls an edge on today’s $625 million BTC options expiry.
Still, the price of Bitcoin could face downward pressure this month despite its recent breakouts to the $40,000 level.
In late July, the 42% inspired some short-term options bets. However, the initial data favors the neutral to bullish options.
An analyst said that if the $40,000 level will not be sustained, then the bulls’ advantage will be reduced.
He added that the pressure comes from the infrastructure proposal in the US Senate. It is where HR 3684 tightens the regulation on firms that handle crypto.
Also, it widens the reporting requirements for brokers which had a knock-on effect on the bullish momentum in the market.
Additionally, the bill’s supporters believe that they can expand the taxation on cryptocurrency transactions to obtain $28 billion in extra funding.
This Friday, the $625 million Bitcoin options expiry is holding $400 million worth of the neutral to bullish options pile. It is against the $225 million in covered puts.
In addition, 70% of the call options were placed over $39,000 although the initial analysis showed a huge difference.
Based on an analysis, if the price of Bitcoin will fall below $39,000, only $120 million call options can participate in Friday’s expiry.
On the other hand, if Bitcoin is traded above $39,000, then the difference will climb to $110 million.
However, the call options may outrun the protective puts by $162 million if the bulls will come together to push the market over $40,000.
Another analyst stated that the volatility of Bitcoin leaves room for surprises even though the options expiry will occur in less than 15 hours.
Crypto Prices Mostly Up as Bitcoin Hits $40K
As of the moment, Bitcoin’s price is still at $40,486.71 with a 24-hour change of 5.94%. It has a market cap of $760.23 billion and a 24-hour volume of $41.67 billion.
Alongside, Ether gained 4.17% or 110.39 points to $2,750.57. It has a market cap of $321.77 billion with a 24-hour volume of $37.96 billion.
Likewise, XRP also climbed 2.39% or 0.02 points to $0.73. It has a market cap of $73.07 billion with a 24-hour volume of $2.67 billion.
Consequently, Cardano jumped 1.03% to $1.37 with a market cap of $44.16 billion and a 24-hour volume of $1.53 billion.
Additionally, Litecoin also smashed 3.91% or 5.39 points to $144.07. It has a market cap of $9.83 billion and $1.98 billion.
Furthermore, Doge spiked 1.52% or 0.003 points to $0.20 with a market cap of $26.12 billion and a 24-hour volume of $1.10 billion.