Bitcoin Has Fallen With This News! Short Sales Started!

Bitcoin (BTC) price is trading at the $27,800 border, where it is down 2.5% on the day. In addition to the loss of critical support and expired options; It was caused by a massive whaling operation that took place on the Aave.

Three-month Bitcoin options expired

Bitcoin (BTC) is trading under pressure on Friday as billions of dollars in options expire and some whales see it as a short opportunity to short its Ethereum-based counterpart, WBTC. cryptocoin.com As we reported, it fell 1% to $27,546 after the failed test of $29,000 on Thursday.

Meanwhile, Deribit, the world’s largest crypto options exchange in terms of trading volumes and open interest, has identified Bitcoin options valued at over $4 billion. Speaking to CoinDesk, Griffin Ardern, volatility trader at asset management firm Blofin, said, “The current price drop, the impact of delivery and fulfillment, and the delta-neutrality of market makers. [piyasa-nötr] more likely due to the influence of them selling their spot and contracts to protect their books,” he says.

Bitcoin fell below $28,000 as options expire

Market makers provide liquidity by creating buy and sell orders and earn money through the bid-ask spread while holding a direction-neutral risk. They are always on the opposite side of investors and usually buy and sell the underlying cryptocurrency on the spot market or buy or sell perpetual futures to offset bullish/bearish positions in the options market.

Indirect evidence confirms Ardern’s claim: Bitcoin dropped from $28,100 to $27,546 an hour before 08:00 UTC. Deribit closed quarterly contracts at 08:00 UTC.

BTC Deribit market data

The chart, tweeted by Twitter’s @52kskew, shows that the cumulative volume delta (CVD) in the Deribit-based perpetual futures market turned sharply negative before the settlement time. A positive and rising CVD means more buyers are on the move, while a negative CVD means sellers are aggressive.

“Short positions are increasing”

Selling borrowed WBTC, i.e. shorting, can play a role in helping prices fall. According to data tracked by Santiment, the number of WBTC borrowed from the dominant decentralized lending protocol Aave has increased by 29% in the last two weeks to 3,220 BTC. Investors often express short expectations against Bitcoin with WBTC tokens borrowed from DeFi platforms like Aave.

According to Santiment’s report, “Currently, we are seeing a cautious borrowing of WBTC in this price range, nothing too crazy yet, but it seems like people have started taking short positions.”

Recent highs in total WBTC borrowed from Aave have determined price bottoms in Bitcoin. According to Santiment, the number of WBTC borrowed from Aave is increasing, a sign of renewed interest in taking an indirect short on BTC.

Santiment also said, “Those who shorted AAVE seem to have a good track record to blow up. So far, the highest increases in total borrowed WBTC have seen them set local bottoms,” he added.

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