Bitcoin bulls will fight to hold the price at $42,000 to bag a $175M profit ahead of options expiry of $3.34B on Friday, March 25. Bitcoin has stayed true to the ascending triangle and has bounced several times from both its resistance and support lines.
Though this appears as positive for Bitcoin, the fact remains that the prices remain 11% down against last year. To illustrate a comparison, the BCOM showed a gain of 29% during that period.
The Bloomberg Commodity Index profited from the increase in prices of natural gas, crude oil, corn, lean hogs, and wheat. But the combined market for cryptocurrency was stuck below the $2T level of resistance and stand a little below at $1.98T.
Turning the spotlight on the US economy, Americans continue to reel under 4-decade record inflation. The spending bill worth $1.5T was approved a week ago. That should help see the government across September. Worsening macro-economic conditions have put pressure on the supply curve and that has, in turn, raised the prices of commodities even further.
These developments have kept cryptocurrency traders troubled about the expected rate hikes in Fed Reserves in 2022 to halt inflationary pressure.
Should the international economies go into a recession, financiers and investors will want protection in the US dollar and other securities. They would want to move away from risky asset classes such as cryptocurrencies.
Bitcoin Bulls Push Their Bets Higher At Above $100,000: Aim For $280M Profit
While the open concentration for the Bitcoin options expiry on March 25 is $3.34B, the real figure is expected to be low as bulls have been over-optimistic. Traders were deceived by the fleeting March 2 hike to touch $45,000, with their wagers for the March 25 options expiry stretched outside $100,000.
Even the recent rally by Bitcoin crossing the $42,000 mark surprised bears as just 16% of total bear option bets for this week on March 25 was placed beyond this level. At 10,600 calls (bull) versus 4,300 puts (Bear) between $44,000 and %45,000, the bulls can theoretically boost gains for the bulls to $280M.