Bitcoin (BTC) rises $1.5K in less than an hour, reversing a days-long decline.
As almost $6 billion in options expire, BTC soars above $48,500 in a show of strength.
On December 31, Bitcoin (BTC) had an early end-of-year flourish, with BTC/USD retaking $48,000.
Expiration of options fades
BTC/USD surged almost $1,500 in a single hour on 31st of December 2021, according to data from Cointelegraph, Markets Pro, and TradingView.
The rise was a welcome reprieve after many days of decline, and it showed a glimpse of what can happen in a cryptocurrency market when liquidity is thinner than usual during the holiday season.
Traders speculated that the over $6 billion BTC options expiry event in December could have supplied the needed relief, as this event has a history of influencing BTC price action.
The majority of participants in a survey conducted by the Bitcoin Twitter account earlier in December projected BTC/USD to be above $55,000 by the expiry date.
As reported, there are growing hopes that a “flippening” in BTC ownership will begin next month, with institutions playing a larger role overall.
Coinbase Pro, a professional trading platform, saw nearly 10,000 BTC depart its books just 24 hours before the increase.
Altcoins benefit from the relief
With Bitcoin’s volatility still high, altcoins jumped on the bandwagon, reversing some of the week’s losses.
At the time of writing, Ether (ETH), the most valuable altcoin by market capitalization, was trading at roughly $3,800, down 7.2 percent in the last seven days and still below the $4,000 threshold.
At the time of writing, the top ten cryptocurrencies by market cap had gained between 1.5 and 4%.