6 months ago
17 ARTICLE AD
Bitcoin’s (BTC) price registered a new all-time high on Mar. 5 and swiftly crashed 17% to the region below $60,000. However, a swift recovery occurred, and BTC is valued at $67,125.22 at the time of writing. Jag Kooner, Head of Derivatives at Bitfinex, assesses that the market could soon see Bitcoin registering new price peaks.
Kooner points out that the options market saw a significant temporary rise in call option open interest (OI) for strike prices above $100,000 for the first time in history. The current OI for call options above this strike price is close to $850 million, although most of these have very long-dated expiries.
“Even though several traders and investors are panicking after the subsequent flash crash to sub $60,000 levels, this just mirrors the price action in 2020 where BTC moved past its previous cycle high around $19,890 briefly and moved down 15 percent immediately, causing a large number of long liquidations,” Kooner adds.
On that cycle, BTC took around 15 days to move back past the new high in 2020. However, Bitfinex’s Head of Derivatives expects a faster recovery this time, considering the pace with which Bitcoin moved higher this cycle.
“As for market fundamentals, this dip allowed for an OI flush, wiping $4.5 billion worth of open positions from the market. Funding rates that were as high as 130 percent on some major exchanges have also settled down. This is healthy for a BTC uptrend,” Kooner concludes.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
