Bitcoin price recovers over the weekend after Friday options expiration
- Bitcoin price recently dropped in expectation of expiring options contracts, pulling down the market with it.
- The drop did not spiral out of control, and the coin started recovering immediately after the expiry.
- The recovery continued over the weekend, and it brought the coin back to $57,500 by Monday morning.
Bitcoin price has been dropping for quite a while, as options contracts scheduled to expire on Friday, March 26th, approached. However, once the contracts expired, BTC price finally started a recovery. On top of that, there has been a wave of positive news regarding the coin which may have contributed to BTC price recovery.
Bitcoin critics changing their stance towards the coin
One of the biggest and most interesting developments recently is the fact that the Bitcoin network just welcomed two of its early critics. One of them was a Norwegian businessman, Øystein Stray Spetalen, while the other one is the well-known Wolf of Wall Street, Jordan Belfort.
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Belfort recently said that he considered the shift in monetary policies, and that he concluded that it does make sense to hold BTC as part of one’s portfolio. As for Spatalen, he did not try to say much about the topic, but instead, he turned to action, openly investing in BTC for himself.
Another big move for BTC came from New Zealand, where a $350 million retirement fund exposed its own portfolio to the coin, allocating 5% of its assets to BTC. The CIO of NZ Funds Management, James Grigor, commented by saying that Bitcoin cannot be ignored anymore, and that anyone who is happy with investing in gold really can’t discount BTC.
Meanwhile, in the US, the country’s security regulator started receiving multiple new Bitcoin ETF proposals from a number of firms, with Fidelity being the latest one to join the trend. The increase came after Canada approved multiple ETFs in the past month, as well as a recent report that Brazil now also has its own exchange-traded fund based on Bitcoin. While there are no confirmations that the SEC will approve any of proposals, it is clear that the companies believe that this is the right time to try again.
As for the US government, it is still unknown which way it might take. Some, like Robert Gutmann, the CEO of NYDIG, believe that the government is one step away from investing in BTC, and that it will surely happen soon, after institutional investors got more open towards the coin. Others, like Billionaire Ray Dalio, however, believe that the government will move not to invest, but to ban BTC in the states, completely. At this point, both suggestions seem equally unlikely, but nobody can know what will actually happen, so the only thing that can be done now is to wait and see how things will play out.
Bitcoin starts a steady recovery
From the technical point of view, Bitcoin has been doing a lot better after the options contracts expired last Friday. A lot of it likely has to do with institutional investors, who started buying coins rapidly despite the recent dip, which took the coin down to $51,460.
Over the last three days or so, BTC went from its bottom at $50,500 to a new weekly high of $57,177 at the time of writing, according to data from CEX.IO, and on its way back towards $60,000.
Whether or not the coin will manage to reach this level is another matter. Earlier, I predicted that Bitcoin’s price will end Q1 at $50,000 per coin, as indicated by the coin’s stock-to-flow model. While it seems now that the coin will certainly perform better than expected, I still believe that BTC will climb to $80k by the end of Q2 of this year, and that it could reach $90,000 by the end of the year.