Bitcoin (BTC) price dropped below $48K in late December 28th and also broke below $47,000 in the last 24 hours.

The flagship cryptocurrency managed to break the critical resistance of $51,000 earlier this week, but failed to hold onto those gains. Bitcoin is trading below $47,000 as options contracts worth $6 billion are about to expire

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The current price drop seen in Bitcoin is attributed to the expiration of 129.8k options this Friday. The total valuation of the expiring options contract is worth $6 billion, according to SKEW data. The existence of higher volatility until the price fluctuates and expiration is common in the cryptocurrency market.

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This price movement is often caused by options sellers (who may be mainly institutional traders) manipulating the spot market to bring the spot price closer to the strike price at which the largest number of open options contracts expire. For option buyers, this can result in maximum loss (or “maximum pain”). According to a Cayman Islands-based crypto financial services firm, the maximum pain point for option expiration on Friday has been set at $48,000.

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Bitcoin price is currently trading in the second support zone below $51,000, i.e. $46,000 to $48,000, and although it has been on a downtrend in the last quarter except for October, the market is still optimistic for recovery. However, the overall market sentiment remains bullish as we approach the end of the year. Crypto analysts liken the 2021 bull run to the previous year of the 2017 bull run and believe that BTC will reach new highs in 2022 and we are now a long way from a market peak.

The price of the leading cryptocurrency usually turns green after options expire, and given that its upcoming expiration is one of the largest, price fluctuations are expected to occur. Bitcoin price is down 5.4 percent in the last 24 hours, trading at $46,904.38 at the time of writing, according to data from CoinGecko. Bitcoin's last 24-hour trading volume was at $25,809,013,518. For more up-to-date news on the cryptocurrency market, please visit Kriptoarena.com.