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An earthquake for Bitcoin ?: Experts warn that the price could fall below $ 40,000

Fear that Bitcoin will continue in free fall
Fear that Bitcoin will continue in free fall

Is an earthquake looming over the Bitcoin frontier? Investors are turning their attention to the $ 3.4 billion in options of the most popular cryptocurrency, which expire this Friday, one of the biggest expirations this year.

It should be noted that the value of bitcoin and other digital currencies fell rapidly this week due to the fear of world markets about the effect that the potential bankruptcy of the Chinese real estate developer Evergrande could generate.

In this regard, the price of bitcoin fell more than 10% in the last three days; and the value of other major cryptocurrencies, such as Ethereum, Cardano, Binance’s BNB, Ripple’s XRP, and Solana, fell further after posting huge gains. The value of bitcoin stood at $ 42,118 at 8 in Argentina.

According to a note from Forbes, Bitcoin options contracts – which enable investors to buy or sell the cryptocurrency at a specified value within a specified period of time – for nearly 80,000 bitcoins, – or about $ 3.4 billion at current prices – expire on Friday.

This was detailed by the crypto news site ABMCrypto; the early expiration of Bitcoin options could “trigger an outbreak of price volatility, as previous large expirations attracted investors’ attention.”

In this regard, the size of the bitcoin open interest market has exploded in the last year and has doubled since the summer of 2020. In this sense, the operations reflect that speculators “feel optimistic about bitcoin before the expiration of the 3.4 billion dollar options ”.

“Currently there is more open interest in call options (bets that the price of bitcoin will go up) than in put options” (bets that the price will go down) ”.

All cryptocurrencies fell
All cryptocurrencies fell

In any case, the sharp drop in the price of bitcoin and cryptocurrencies in recent days means that “many of the bullish contracts are going to be liquidated, and some market watchers have warned that the price of bitcoin could sink further.”

“Bitcoin has lost support at the $ 44,000 mark and looks set to test its $ 39,000 bottom,” he warned. Tim frost, CEO of the decentralized financial investment platform Yield App to Forbes.

“If it falls around here, we can expect a significant correction to take place.”

For this reason, the price of bitcoin and other cryptocurrencies, including other top ten cryptocurrencies, Ethereum, Cardano, Binance’s BNB, Ripple’s XRP and Solana, are expected to remain under pressure this week due to “risk sentiment” caused by the growing concerns around the potential collapse of Evergrande.

“There is a market-wide move towards risk-off sentiment triggered by concerns around the Evergrande collapse and the implications it could have on the Chinese markets, other debt markets and supply chains,” he said. Noelle Acheson, a market outlook leader in leading digital currency broker Genesis. “Whenever there is a shake in the market, bitcoin is affected because it is a risk market,” he added.

In addition, preferences for bitcoin are also low because September is usually one of the poorest months for the price of bitcoin, according to this note from Billy bambrough.


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Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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