Key Points
- Approximately $8.12 billion in Bitcoin and Ethereum options contracts are set to expire today, potentially causing significant market fluctuations.
- Data from Deribit reveals that 261,390 BTC options contracts and 2,750,922 ETH options contracts are due to expire, valued at $4.65 billion and $3.47 billion respectively.
The cryptocurrency market is on high alert today. This is due to the expiration of approximately $8.12 billion in Bitcoin (BTC) and Ethereum (ETH) options contracts.
This significant event could result in substantial market changes as traders and investors react to the expirations.
Overview of Bitcoin and Ethereum Options
According to data from Deribit, a total of 261,390 BTC options contracts are due to expire today. These contracts are valued at $4.65 billion.
These contracts display a put-to-call ratio of 0.6, signifying a dominant bullish sentiment among traders. More bets are being placed on price increases (calls) than decreases (puts).
The maximum pain point for Bitcoin options expiring today is at $65,000. This critical price level is where the most option holders could suffer financial losses, making it a crucial level for traders to watch.
Additionally, 2,750,922 Ethereum options contracts, totaling around $3.47 billion, are also set to expire today.
These contracts have a put-to-call ratio of 0.85, indicating a relatively balanced outlook with a slight preference for call options. The maximum pain point for Ethereum options is $3,300.
Market Impact and Comparative Analysis
The options expiry today greatly overshadows last week’s events. During that time, a combined total of 375,000 BTC and ETH options contracts expired, valued at nearly $3 billion. This could have contributed to the market decline earlier in the week.
The crypto market has experienced a significant decrease this week. The global market cap currently stands at $2.52 trillion, showing a 0.39% increase over the last day.
In the past 24 hours, the total crypto market volume reached $73.81 billion. This represents a 10.54% decrease from previous values. Bitcoin’s dominance is currently at 53.00%, up by 0.03% over the day.
It is uncertain how the options contracts expiring today could impact the market. However, traders are advised to prepare for potential movements.
At the moment, both Bitcoin and Ethereum are trading above their respective maximum pain points. As these assets approach these critical price levels, traders may see increased buying or selling pressures, affecting market sentiment.
Outstanding Crypto Options Positions
Deribit’s data also provides insights into outstanding BTC positions yet to expire. Long positions have strike prices ranging from $70,000 to $100,000, with a total value of $886 million. On the other hand, short positions with a strike price of $60,000 have the highest open interest at $519 million. This indicates bullish sentiment among derivatives traders, who anticipate further price increases.
The total notional value of all outstanding BTC options contracts is approximately $19 billion. This highlights the significant interest and activity in the crypto derivatives market.
