The cryptomarkt is again under pressure. Bitcoin (BTC) has dropped by the limit of $ 115,000, while Ethereum (ETH) and XRP dive even deeper with losses of 6.4 and 7.5 percent.
And it can become even more restless today. There are about $ 7 billion in BTC and ETH options, which often leads to extra price fluctuations.
Bitcoin price: increase in the direction of $ 117,000?
Today, options worth more than $ 7 billion are on the Deribit trading platform. These are contracts with which traders can buy or sell BTC or ETH at a fixed price, as long as they do that within an agreed period.
It is important to follow the so-called ‘Max Pain’ level. That is the price level where most option holders make a loss. Big players, often the sellers of those options, try to push the course to it. The closer the course is at that level, the less they have to pay out.
For Bitcoin, that point is 117,000 dollars, just above the current rate of $ 114,700. That could mean that the course still gets some upward pressure towards that level. We often see that the BTC price is moving to the Max Pain level in the run-up to such a large outcome.
ETH course under light pressure
At Ethereum the image is slightly different. The Max Pain level is at $ 3,550, while the current rate is around $ 3,610. This difference is small, but could cause slight downward pressure. However, a major correction seems unlikely, unless sentiment further deteriorates.
Trump’s Trade War is scared to investors
Today’s decrease is not falling from the sky. US President Donald Trump has announced new import tariffs for countries without a trade agreement with the US. Syria, Laos and Switzerland, among others, are being hit. The message: whoever does not close a deal pays the price.
Although these rates will only start in a week, the market reacted immediately. The trade war causes uncertainty, and crypto is no exception.
Source: https://newsbit.nl/7-miljard-aan-bitcoin-en-ethereum-opties-verlopen-vandaag-wat-betekent-dit-voor-de-koersen/
