Dealer Hedging Removed as Bitcoin Price Dips After Options Expiry
Bitcoin's price dropped to $83,808.65 on Friday morning after failing to hold above $85,000 in the European session.
The token opened at $84,378.12 and reached a high of $85,199.84 before reversing course as U.S. equity trading began.
This pattern of buying pushing prices up during Asian and European hours, only to be followed by selling pressure in the U.S. session has repeated itself throughout the week.
Despite the recent drop, bitcoin's market capitalization remains near $1.67 trillion, with a weekly gain of 10% and a September range that shows a sharp rally from a low of $75,025 to a high of $87,363.
The removal of dealer hedging due to Friday's options expiry is expected to lead to higher volatility, as the market adjusts to new positioning.