Bitcoin and the aggregate cryptocurrency market have once again expanded their long-standing struggle with foreign trade.
BTC experienced slight volatility overnight as it jumped to $ 9,400 before falling to a $ 9,100 low.
Since then, the price has recovered most of these losses, but buyers appear to be getting weaker as it continues to move sideways.
The expiration of Bitcoin options contracts worth more than $ 1 billion could be a catalyst for impending volatility, but a research firm is questioning how effective this event will be in the market.
Bitcoin consolidation continues, but it may be over soon
At the time of writing, Bitcoin is trading at just over 1% at its current price of $ 9,290. This marks a slight decline from daily highs of nearly $ 9,500. It also marks a discount from the latest lows of $ 9,100.
In the last few days, it has been stable at around $ 9,400. The drop in the night, which brought it to its current levels, seems to point to some weakness among buyers.
Its range of consolidation is still intact, as long as buyers are able to maintain their price above the upper region of $ 8,000.
The upcoming expiration of the monthly and quarterly Bitcoin contracts on June 26 is an event that could trigger a trend-setting movement.
Arcane Research spoke about this in a recent report, saying:
“Nearly $ 1 billion in Bitcoin options contracts will expire on June 26, representing 60% of the total open interest rate on the BTC options market. In situations such as this, there may be significant financial incentives to move the spot price to a certain level before the expiry date. “
The options market still remains small, signaling that there may be a lack of influence
It is important to keep in mind that the volume of Bitcoin options represents only 1% of what is seen in BTC futures and spot trading.
With this in mind, Arcane Research believes that the event may not have any significant impact on the market.