There is roughly $6 Billion worth of Bitcoin Options set to expire this Friday which could provide some fireworks

If you are wondering why bitcoin has been so weak lately you can thank the equity markets, the 10 year treasury, and well probably the number of options contracts sect to expire this Friday.

There is roughly $6 billion worth of options contracts set to expire this Friday, which is far and away the largest expiration ever.

Check it out:

(Source: https://twitter.com/WClementeIII/status/1374455214179151879/photo/1)

Interestingly enough, the last time we had a massive options expiration like this was at the beginning of January.

What happened to the price afterwards?

Well the price rallied by almost 80% shortly after the massive options expiration.

Whether or not the two had anything to do with each other is debatable, but the facts are the facts.

My guess is this large options expiration is part of the reason that bitcoin is having such a difficult time going up currently.

The max pain theory dictates that the price tends to gravitate towards whatever will make the most amount of options contracts expire out of the money.

With calls outnumbering puts at higher strike prices than we are currently, it should be no surprise while the price is having a difficult time moving up.

Combine that with the volatility going on in the equity markets and I suspect next week will look a whole lot better than the current one for bitcoin's price.

We shall see.