A significant portion of crypto options is expected to expire today, 28th May, 2021. This expiry has led to an increase in volatility in an already unstable market.
Cryptocurrencies have recently experienced a tumultuous period, with one of the highest levels of instability experienced in just 2021 alone. Bitcoin has tumbled down to $36,000. Ironically, both its rise and fall can be attributed to Elon Musk’s investment in it. He had earlier invested in Bitcoin and announced that Tesla would accept payment in the form of bitcoin.
However, he would later change his stance citing environmental concerns related to crypto mining, and withdraw the acceptance of BTC payment, which resulted in a significant dip.
Other challenges facing the crypto market have included the China crackdown on crypto miners in a bid to increase financial stability. The move resulted in a 12 percent drop and would see major mining companies such as Huobi Mall and BTC.TOP suspend their operations.
The looming expiry has resulted in massive action within the markets, with most traders looking to liquidate their holdings. The state of affairs after the expiration remains a subject of much speculation, given the volatility experienced recently.
