Bitcoin Wavers Under $88k As Traders Brace For $14b BTC Options Expiry

Bitcoin price stalled as traders consider the impact of Friday’s $14 billion options expiry, but data does show some bullish traders positioning for higher prices.

Friday’s $14 billion BTC options expiry favors neutral-to-bearish bets as most call (buy) strikes sit above $91,000, increasing pressure on bulls.

Bitcoin traders added year-end call options near $100,000 despite recent losses, showing that bullish expectations persist.

Bitcoin (BTC) price dropped on Tuesday after failing to hold the $89,200 level reached the previous day. Traders are increasingly concerned that Friday’s $14 billion BTC options expiry may reinforce bearish sentiment following weaker private employment data and a decline in US consumer confidence.

The aggregate BTC call (buy) options open interest stands at 104,300 BTC, valued at $9.12 billion at current prices. Yet the recent 23% decline in Bitcoin over 30 days caught bulls off guard, as 84% of these positions were placed above $91,000. These contracts are set to expire worthless if the spot price remains near current levels.

Put (sell) options open interest totals 67,877 BTC, or $5.92 billion. Despite being 35% smaller than call open interest, put positions appear better aligned with prevailing market conditions, with 31% set at $84,500 or lower. Thus, even if Bitcoin recovers part of its recent losses by Nov. 28, probabilities favor neutral-to-bearish outcomes.

Risk sentiment deteriorated further after payroll processor ADP reported on Tuesday that US private companies shed an average of 13,500 jobs per week during the past four weeks. Labor market weakness poses an additional challenge for a consumer-driven economy.

Investors’ sentiment weakened further after the US Conference Board reported that consumer confidence fell to 88.7 in November, down from 95.5 in the previous month. Expectations for income and business also dropped, remaining well below the 80% neutral threshold for the tenth straight month, according to Yahoo Finance.

Although deteriorating economic indicators weigh on investor expectations, they also raise the likelihood of the Federal Reserve adopting a less restrictive monetary stance. Gold rose 1.2% and the Russell 2000 small-cap index gained 1.9% as traders anticipated additional liquidity measures from the US Treasury to help stabilize the economy.

On Monday, US President Donald Trump signed the “Genesis Mission” executive order aimed at accelerating artificial intelligence development and reducin

Source: CoinTelegraph