As Bitcoin dipped below $88,000 during Monday’s trading session, it reflected ongoing volatility in the cryptocurrency market. Ethereum also retreated under $3,000 after briefly surpassing this threshold. The fluctuation in prices comes ahead of significant options expirations on Friday, amounting to a record-setting $28.5 billion for both BTC and ETH on the Deribit exchange.
Despite the decline in crypto prices, some stocks linked to the sector remained resilient. Hut 8 (HUT) saw a notable 16% increase in shares, buoyed by a recent contract for a 15-year AI data center lease with Fluidstack. Additionally, Coinbase (COIN) and Robinhood (HOOD) managed to stay in positive territory, although both traded below their session highs.
Jean-David Pequignot, chief commercial officer of Deribit, emphasized that the upcoming expiry signifies a transition in the market, moving from speculative trading to a more policy-driven approach. He noted the importance of Bitcoin's $96,000 "max pain" level, where option writers may gain the most. Additionally, there has been a notable shift in trader positions, indicating caution as the year-end approaches.