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Expectation of 20 Billion Dollars for Bitcoin and Ethereum: Pay Attention to the Last Friday of the Year! - Coin Bulletin
Ahead of the massive 20 billion dollar expiration in Bitcoin and Ethereum options, volatility and altcoin movement are expected in the market.
Singapore-based QCP Capital has highlighted a significant movement expected this Friday, covering approximately 20 billion dollars worth of Bitcoin and Ethereum options expiring.
The company stated that this amount is almost equivalent to nearly half of the total open positions on Deribit. Additionally, if the spot price continues to fluctuate at current levels, it is likely that option sellers will carry their short positions to a later date.
This process, called 'Roll', refers to investors moving the same position to later dates instead of ending their options on time. This method allows investors to keep their positions active if they still have confidence in market predictions.
It is known that high volatility provides a lucrative environment for option buyers. An increase in volatility increases the likelihood of options being 'in the money' (profitable) before the expiration date, allowing buyers to make a profit.
QCP noted that Bitcoin continues to struggle below $100,000, which could lead to the movement of alternative cryptocurrencies (altcoins).
The company reminded that a similar trend was observed last month and that the ETH/BTC ratio made a bounce from the support level of 0.032 during that period. It said that there was a revival in the altcoin markets after this movement.