The bitcoin price broke the US $ 58,000 level. The derivatives market is likely to have played a role in pushing the price of the world’s oldest crypto to levels not seen in nearly two weeks.
Referring to CoinDesk data, the price of Bitcoin on Saturday (1/7) at 09.42 WIB at US $ 58,329.27 or an increase of 7.37% compared to the position 24 hours earlier.
Bitcoin is still on the climbing path to its all-time high at US $ 64,829.
“One of the reasons for the increase in the price of Bitcoin is due to the expiration of the Bitcoin option contract of US $ 4.2 billion today (Friday, April 30),” said Steve Ehrlich, Chief Executive Officer of Voyager Digital.
“Historically, there has been a decline in prices in the days leading up to the expiration of the Bitcoin options, only to rebound afterwards,” he told CoinDesk.
For most of the week, Bitcoin price struggled to make a profit. Bitcoin last hit the US $ 57,000 level nearly two weeks ago, on April 17.
“What Bitcoin is experiencing is likely a rebound, which further confirms the ongoing bullishness around Bitcoin,” said Ehrlich.
Option expiration may have caused some traders to return to the spot market on Friday as buyers pushed Bitcoin prices upward, according to Nate Cox, Chief Investment Officer of Two Prime.
“The majority of long calls and puts for April monthly contracts ended worthless,” said Cox. “Needless to say, Bitcoin is not moving the way many derivatives traders expected this month”.
“Along with the positive momentum of BTC (Bitcoin), we are also seeing upward price movements in other altcoins, such as DOT, XLM, AVAX, LINK, LTC, ALGO, DASH and ICX in the last 24 hours,” said Ehrlich.
“This shows that traders remain bullish across the spectrum of crypto assets, and are not switching from altcoins to Bitcoin,” he added.
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