- Arthur Hayes of Bitmex exchange said far greater sell pressures in the crypto market will happen when BTC and ETH break the $20,000 and $1,000 price levels.
- Bitcoin touched $20,800 early today before bouncing back to $22,291.
- Open Interest on Deribit Exchange abound at the $20k and $1k price points for BTC and ETH, respectively.
Arthur Hayes, the founder of cryptocurrency exchange and derivative trading platform Bitmex, said that there will be far greater sell pressures in the crypto market should Bitcoin (BTC) and Ethereum (ETH) break the respective $20,000 and $1,000 price levels.
He made the assertion via a five-paragraph Twitter (NYSE:TWTR) thread, where he analyzed data from the derivative contracts on Deribit Exchange early today, June 14.
Firstly, he argued that most of the Open Interest (OI) on Deribit Exchange abound at the $20k and $1k price points for BTC and ETH, respectively. Hayes went on to say “We can also assume that there are massive OTC structured products centered around those strikes as well.”
For starters, OI refers to the total number of outstanding derivative contracts, such as options or futures awaiting settlement. It is the total number of bought or sold contracts. An increase in open interest implies new or additional money into the market, while decreasing OI indicates money flowing out of the market.
If these levels break, $20k $BTC & $1k $ETH, we can expect massive sell pressure in the spot markets as dealers hedge themselves. As far as the charts go, hope the lord shows kindness on the soul of the #crypto markets. [Because] you might as well shut down your computer because your charts will be useless for a while.
Investors continue to count their losses as the crypto market falls even after today. Bitcoin touched $20,800 early this morning before bouncing back. Currently, BTC trades at $22,291, while Ethereum trades slightly above $1,200.