Last month, prices pulled back to $50,000 in the week leading up to the March 26 expiry, only to reverse course in the following days and reach new record highs above $64,000 on April 14.
One possible explanation for the month-end pullbacks was that the “max pain point” – the strike price at which the most open options contracts expire worthless – was so far below the spot price.
For instance, the max pain point for the March 26 expiry was $44,000, and the cryptocurrency traded near $60,000 a week before expiry.
By the time of Friday’s expiration, the price was right around the max pain point of $54,000.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.