Trader: The recent rise in Bitcoin is related to the reduction of open option contracts

Cryptocurrency derivatives trader Gordon Grant stated that there are far fewer open contracts at the $40,000 level, which could encourage Bitcoin's recent rise as hedgers have a relatively limited supply of delta and suddenly lost their options on this figure.

 

He added: "After the end-of-month options expired on Friday, January 26th, short-term Bitcoin derivative open contracts significantly decreased, especially for options. This is in stark contrast to last Friday before the option expiration when local gamma value excess might constrain the price of underlying assets after a significant short-term pullback."