Bitcoin price in recovery mode ahead of tomorrow’s AUD$1.1 billion options expiry

Posted: 16 September 2021 4:23 pm
News
btcprice16september_finder_1800x1000

BTC has wiped out its most recent losses by recording monthly gains in excess of 3%.

  • There are rumours that the US SEC may be on the verge of accepting Fidelity's ETF application in the coming few days.
  • A BTC transaction worth AUD$2.7 billion was processed for just AUD$1 earlier this week.
  • Reports suggest that a growing population of Aussie baby boomers are transferring their wealth into crypto.

After having slipped down to the all-important AUD$60k resistance zone a little over 72 hours ago, Bitcoin, the world's largest cryptocurrency by total market capitalisation, has continued to mount a steady comeback, with the asset having wiped out its losses from the previous week. At press time, BTC is trading at AUD$64,975.

This ongoing momentum comes on the heels of news that Morgan Stanley, one of the largest banking entities in the USA, has appointed a leader for its dedicated cryptocurrency research wing. There is also growing noise that Fidelity Digital Assets, an investment arm of the US$4.2 trillion global fund manager, may become the first US-based firm to get approval for a Bitcoin Exchange Traded Fund (ETF) from the American Securities and Exchange Commission (SEC).

Lastly, 17 September will see US$810 million (AUD$1.1 billion approximately) in BTC options expire; however, what's interesting to note is that derivatives data suggests that bulls may be looking to push BTC past the US$50k mark soon. Therefore, it will be interesting to see how things play out for the market over the weekend.

How to buy Bitcoin

Low Bitcoin transaction fees highlight the power of crypto

As per data made available by analytics platform Blockchain.com, a mammoth BTC transaction worth AUD$2.7+ billion took place just a couple of days ago. However, what's interesting to note is that despite the enormous financial value of the transaction, the fee incurred for the transfer was just 0.00001713 BTC fees – which works out to around a single Australian dollar. In this regard, it is also worth noting that just over a year ago, another Bitcoin transaction worth US$1 billion was successfully processed for a gas fee of under US$4.

To put into perspective how low these fee rates are, regular fiat transfers take anywhere between 1% and 4% in transaction fees while requiring a total of 2-4 business working days to process. In that sense, a transfer worth US$2 billion would cost anywhere between US$20 million and US$60 million in processing charges alone.

Aussie boomers are betting heavily on crypto

According to the CEO of Australia-based cryptocurrency trading platform BTC Markets Caroline Bowler, the last 12-odd months have seen a growing number of older clients make use of the platform for crypto-acquisition purposes. Baby boomers, an age bracket that includes individuals born between 1946 and 1964, now constitute over 5% of the platform's estimated 325,000 customers.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Get into cryptocurrency

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site