Tom Lee faces Bitcoin test as $10.8 billion in options near expiry
Tom Lee's bullish call faces a test.
The short version
- Roughly $10.8 billion in Bitcoin options expire soon.
- BlackRock's IBIT drew $110 million on Monday after massive withdrawals.
- Traders brace for big price swings before the Federal Reserve decides rates.
Why it matters to you. If you hold crypto or watch the markets, expect choppy trading ahead of the Fed's rate announcement.
Tom Lee, the Fundstrat co-founder, is facing a major market test as roughly $10.8 billion in Bitcoin options approach expiry on Friday. According to Yahoo Finance, the options deadline comes just as the Federal Reserve prepares to announce its interest-rate decision. Lee recently spoke bullishly about stocks and predicted one of the biggest rallies of our lifetime.
That optimism has put his past $250,000 Bitcoin target back in the spotlight. Lee pointed to institutional participation and the expansion of blockchain-based finance as reasons for his bullish outlook. However, he cautioned that the path to higher adoption will be very jagged.
Around $10.79 billion worth of Bitcoin options on Deribit are due to expire on Friday, Oct. 30, according to PerpFinder data. That includes $6.96 billion in call options and $3.83 billion in put options. As the deadline approaches, traders closing their positions could add to sudden price swings.
Meanwhile, BlackRock, the massive asset management firm, attracted $110.3 million into its IBIT exchange-traded fund on Monday. That inflow followed net withdrawals of $773.5 million over the two previous sessions. When billions in options expire at once, the charts can move faster than your morning coffee cools.
Photo: Dazzling4, CC BY-SA 4.0, via Wikimedia Commons
