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Bitcoin price falls to $50K, but $6B options expiry can refuel bulls

The largest-ever Bitcoin options expiry of $6 billion nearly doubles the previous record.
The biggest-ever Bitcoin options expiry is due on March 26. Over $6 billion worth of Bitcoin (BTC) options will expire across exchanges on Friday, with a majority of these options being on Deribit. This will be a record expiry in terms of the value and number of options — a total of 100,400 Bitcoin options will expire. The previous record was set in January when nearly $4 billion worth of options expired, representing 36% of the open interest at the time.The enormous upcoming expiry comes on the back of rapid growth in open interest in the Bitcoin options market. The OI of Bitcoin has seen more than 147% growth since the beginning of the year. The total OI across the top five crypto derivatives exchanges is currently $14.01 billion, up from $5.67 billion on Jan. 1.Influence of options market on spot market growsThe size of the options market is increasing both in volume and open interest. As a result, the influence that this market has on the spot markets is also increasing. It’s well known that the derivatives market is an important tool for the spot market’s price discovery. For example, in the traditional financial markets, the size of the derivatives market is several times the size of the spot markets for assets like gold, equities, etc.However, the opposite is the case for Bitcoin: The size of the BTC spot market is several times larger than its derivatives market. But still, investors look …
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