The Bitcoin options market has seen a surge of interest lately, with $745 million worth of options expiring today (31 July). Last month saw the largest options expiry ever at nearly $1 billion worth, and this month is not far off.
Options markets allow traders lock-in assets at a set price with a down payment and then select whether to buy the assets at a later date or sacrifice their deposit. Lately, Bitcoin’s options market has grown considerably and is now showing signs of potentially taking over the Bitcoin contracts market.
Analysts say it is difficult to predict how the market will be affected by the options expiry. Last month on June 26th when almost $1 billion in options expired the market wasn’t heavily affected. Depending on whether the majority of traders choose to buy or not, it could swing either way. However, with Bitcoin gaining value considerably over the past week it seems more likely that the expiry could push things to the upside.
With a bull flag forming on the daily chart, Bitcoin has a good chance of breaking upwards out of the current pattern. Long positions for Bitcoin are at around 65%, showing strong positive sentiment for further upward momentum.
PlusToken Scammers Arrested
With the scammers behind the recent PlusToken Ponzi Scheme having allegedly been arrested according to Chinese news outlets, confidence in crypto markets will hopefully return. The arrests mean that the scammers won’t be able to offload their stolen crypto, a threat that has hung over the crypto market since the scam was discovered months ago. It is believed that recent large selloffs on the crypto market may have been a result of PlusToken scammers dumping their crypto. Despite this selling pressure, Bitcoin has managed to hold onto its price and even increase in value, meaning without the threat the market should significant gains.
Ethereum (ETH) has also seen impressive gains lately, surging 47% over the past month and reaching a 12-month high. Much of the gains have been attributed to a burgeoning DeFi market that has largely involved coins built on Ethereum’s ERC20 standard. Recently, however, the Defi market has begun to drop but the losses haven’t been passed on to Ethereum. The gains make it the second most profitable coin in the top 10 this past month, beaten only by Cardano (ADA) which has seen a huge 70% in gains.