Strong Consumer and Government Spending Drive Q4 Growth
According to the BEA’s Thursday morning report, robust consumer and government spending were the primary drivers of the growth seen in the fourth quarter.
CoinGecko data reveals that the world’s oldest and largest cryptocurrency, Bitcoin, had a trading volume of nearly $30 billion yesterday. This high trading volume coincides with the release of positive U.S. GDP figures.
Crypto Futures Expiration and the Potential Impact
The upbeat U.S. GDP report coincides with the possible expiration of billions of dollars’ worth of crypto futures. Crypto futures are derivatives used by investors to speculate on the future price movements of assets like commodities, currencies, or crypto assets.
Derebit Chief Commercial Officer Luuk Strijers highlighted that tomorrow’s expiration is especially noteworthy, with around $3.7 billion in BTC options notional open interest set to expire. The “max pain level” is anticipated to be at $41,000, indicating the price level at which options holders might experience the most financial pain.
A similar situation is observed with Ethereum (ETH) options. Approximately $2 billion in options notional open interest is set to expire, with a “max pain level” of $2,300.
However, Strijers noted that many traders appear to be extending their positions rather than allowing their contracts to expire. The January and February expiries have seen the most activity, suggesting that traders are rolling over their positions.
Bitcoin Faces Headwinds Following an Eventful January
This recent development comes after a tumultuous January, which witnessed the approval of 11 different spot Bitcoin exchange-traded funds (ETFs), substantial trading volumes of their shares, and significant withdrawals from the Grayscale Bitcoin Trust as investors sold their previously locked-up shares.
As a result of this selling pressure, Bitcoin experienced strong downward momentum, dipping to as low as $38,678 at the beginning of this week.