According to data from Skew Analytics, nearly $ 1 billion worth of Bitcoin options contracts, nearly half of which are in existence, will expire on Friday. And at the same time, the Open Interest in Bitcoin options has risen and hit a new high.
Open Interest of Bitcoin options
According to data from Skew, options contracts were opened for a record value of $ 2.14 billion on Tuesday. The previous record would have been reached on July 30 with $ 2.11 billion dollars.
As we have explained previously, the Open Interest consists of the number of contracts that remain open at the end of the session. And it is frequently used as an indicator of the activity and strength of an asset.
Consequently, an increase in it accompanied by a price rise indicates that new investors could be entering the crypto market and be seen as an upward price movement.
Another interesting fact is the number of options contracts that expire on Friday: 89,100! With a theoretical value of more than USD $ 1 billion.
The situation is predicted to inject some volatility into Bitcoin’s spot price starting Friday. The reason is that it could introduce a large amount of crypto to the market as traders search for dump or HODL.
And, in addition, Friday also coincides with the expiration of approximately USD $ 450 million in Ethereum options.
In fact, Charles Bovaird of Quantum Economics explained to Decrypt that “As these contracts approach their expiration date, volatility could increase if investors choose to buy, sell or let their contracts expire”.
Even so, there is also the possibility that it does not have an impact, in the end, we are in the crypto market and here nothing is certain.
Europe as the creator of global standards on the Blockchain
Today a report was published by the European Commission announcing its association with the European Blockchain Partnership (EBP).
The objective of this association is to launch a new regulatory sandbox focused on crypto and Blockchain technology by 2022. This facility will allow regulators, various companies and technology experts to cooperate and test innovative solutions in the sector.
Coinbase welcomes vote of confidence
As we reported yesterday, the Office of the Comptroller of the Currency (OCC), which is part of the United States Department of the Treasury, issued a publication authorizing national banks and federal savings associations to hold reserves from Stablecoins issuers.
The Treasury Department guidance was well received by Coinbase. Specifically, it was Paul Grewal, legal director of the crypto exchange, who praised in Twitter the new guide. Also, I add that, I hope it will be a catalyst for adoption.
Russia puts more pressure on the crypto market
According to Kommersant, the Russian Ministry of Finance is working on a bill on crypto regulation. The problem is that, if it came into force, it would force residents of the country to declare their crypto wallets or face up to 3 years in prison.
As explained by the media, any natural or legal person that receives more than USD 1,300 annually will be obliged to declare.
Two mining products, one for Bitcoin and the other for Ethereum
Today, as we reported from CryptoTrend, Canaan Creatives and NVIDIA launched products for crypto mining, one for Bitcoin and the other for Ethereum respectively.
Canaan launched an ASIC model that averages 90 TH / s, managing to catch up with Bitmain and MicroBT in the “arms race”.
However, NVIDIA’s new graphics card has caught the attention of the entire crypto market. Many have considered it a ‘beast’ since it surpasses all the schemes and makes it the best option to mine Ethereum.
In a few lines …
- Line launched a rewards program where people can earn LINK (LN) tokens if they use their digital services.
- According to CoinTelegraph, SEC Commissioner Hester Pierce insisted that the body should approve a Bitcoin ETF in the United States.
- Nick Percoco, Director of Security at Kraken, announced the launch of security enhancements for the crypto exchange with the aim of reducing Phishing.