The Bitcoin price pulled back from the $60,000 level last week and saw lows just shy of the $50k mark. The market responded to worry about a record $6bn options expiry on Friday, but once that was complete, BTC rallied over the weekend and is currently trading above $58k.
Options markets allow traders to hedge against market moves and make longer price bets over time. At the expiry date, which is always a Friday in stocks and commodities, the largest traders can push the price around in an attempt to see larger pay-outs from their options contracts. This led to Bitcoin’s pullback towards the $50k level and had traders worried about a sharper drop. The expiry of options passed and that gave bulls a green light to return.
General Motors to Invest in Bitcoin?
US automaker General Motors was the latest big-name corporation to talk about Bitcoin investment. The move follows rival car maker Tesla’s recent addition of BTC to its balance sheet and Elon Musk’s recent announcement that Tesla would now start accepting the coin for payment on its electric vehicles.
During the recent GM Q4 earnings call, CEO Mary Barra said that the company had no plans to invest but would continue to evaluate if customers demanded it.
“This is something we’ll monitor, and we’ll evaluate, and if there’s strong customer demand for it in the future, there’s nothing that precludes us from doing that.”CEO Mary Barra
The news highlights that Wall Street’s best-known companies are watching the situation in the cryptocurrency markets closely. Bitcoin will show us this week whether the weekend bounce was a near-term low and the coin could see new highs if new buyers emerge.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.