BTC holding on to the $10,727 level means that the asset is steady after even though $1 billion in options expired yesterday and one hacker stole $150 million worth of cryptocurrencies from KuCoin as we reported previously in our bitcoin news.
Despite the tumult, the price of the number one cryptocurrency held strong and increased by 1.1 percent over the last day to hit the $10,717 level according to the data acquired by coinMarketCap. The stability persisted with BTC holding on to these levels, during the higher-than-usual trading volumes as on Thursday the trading volumes for the coin which is the biggest by market capitalization that doubled from $24 billion to $52 billion while the trading volume remained steady ever since.
So, was the volatility expected? Well for some it could have been because there was an expiry of almost $1 billion worth of BTC options or about half of the BTC options contracts. Bitcoin options are similar to futures contracts or at least they were back in the past as people sign contracts to purchase Bitcoin at a certain price at some point in the future. Bitcoin will have increased in price meaning that those singing the contracts secure BTC at the price below market value.
Futures contracts oblige the signatory to purchase the BTC upon expiry where the BTC options contracts merely give them the option with no obligation to purchase them. This could be a huge point of volatility mainly if people dumped the extra coins on the market. This could have caused the price to fluctuate but alas this has not happened yet. The second event that threatened the crypto market with volatility was the recent KuCoin hack where the hackers managed to drain about $150 million worth of Ethereum-based cryptocurrencies and the undisclosed amount of the cryptocurrencies on other blockchains as Bitcoin as well.
The hackers could have dumped these cryptocurrencies on the market, crashing in moments but this hasn’t affected BTC as well. As we reported in the latest bitcoin news, Bitcoin indicators show that the BTC selloff is running out of steam with the cryptocurrency posting huge losses as buyers are having a hard time garner significant momentum. The selling pressure sent shockwaves over the entire cryptocurrency market causing the altcoins to see huge selloffs that erased the majority of the gains.