With the asset tapping $64,000 this week, will the big expiry event push Bitcoin prices higher or initiate a correction?
Around 32,200 Bitcoin options contracts will expire on March 1. This week’s expiry event is the month’s second-largest as another huge one – worth $6 billion-plus – will occur at the end of March.
The notional value of today’s expiring Bitcoin options is $1.96 billion, according to crypto derivatives provider Deribit.
Moreover, the put/call ratio is 1.49, which means there are more sellers of short contracts (puts) than longs (calls). This suggests that derivatives traders are leaning towards a market correction. The max pain point, or the price at which most losses will be made upon expiry, is $55,000.
The $60,000 strike price remains hugely significant, with 15,329 calls and a notional value of $934 million at this point. Additionally, the put/call ratio here is just 0.20, meaning the bulls vastly outnumber the bears who are shorting at this strike price.
There is also a lot of interest at the $65,000 strike price with 14,137 calls with a notional value of $861 million, according to Deribit.
Bitcoin open interest (OI) by expiry. Source: Deribit
Deribit also reported an all-time high in open interest, which passed $29 billion on Feb. 29. Open interest refers to the total number of open derivative contracts, such as options or futures, that have not been settled.
Crypto derivatives software provider Greeks Live reported that clients traded $620 million in options volume on Feb. 29, a record high for the platform.
In addition to the big batch of Bitcoin options expiring today, 235,000 Ethereum contracts are also expiring. These have a notional value of $793 million and a put/call ratio of 0.88, meaning that long and short sellers are more evenly matched.
Crypto markets have retreated a little, with total capitalization currently at $2.37 trillion.
Bitcoin has pulled back to $60,878 at the time of writing, and a further correction looks likely. Ethereum has also dipped to $3,372 as it follows Big Brother, and markets cool after a week of rallying.
It is unlikely that that the options expiry will have much impact on spot markets, which are due for a correction.
The post How Will Crypto Markets React to $2B Bitcoin Options Expiry? appeared first on CryptoPotato.
Around 32,200 Bitcoin options contracts will expire on March 1. This week’s expiry event is the month’s second-largest as another huge one – worth $6 billion-plus – will occur at the end of March.
The notional value of today’s expiring Bitcoin options is $1.96 billion, according to crypto derivatives provider Deribit.
Big Bitcoin Options Day
Moreover, the put/call ratio is 1.49, which means there are more sellers of short contracts (puts) than longs (calls). This suggests that derivatives traders are leaning towards a market correction. The max pain point, or the price at which most losses will be made upon expiry, is $55,000.
The $60,000 strike price remains hugely significant, with 15,329 calls and a notional value of $934 million at this point. Additionally, the put/call ratio here is just 0.20, meaning the bulls vastly outnumber the bears who are shorting at this strike price.
There is also a lot of interest at the $65,000 strike price with 14,137 calls with a notional value of $861 million, according to Deribit.
Bitcoin open interest (OI) by expiry. Source: Deribit
Deribit also reported an all-time high in open interest, which passed $29 billion on Feb. 29. Open interest refers to the total number of open derivative contracts, such as options or futures, that have not been settled.
Crypto derivatives software provider Greeks Live reported that clients traded $620 million in options volume on Feb. 29, a record high for the platform.
In addition to the big batch of Bitcoin options expiring today, 235,000 Ethereum contracts are also expiring. These have a notional value of $793 million and a put/call ratio of 0.88, meaning that long and short sellers are more evenly matched.
Crypto Market Outlook
Crypto markets have retreated a little, with total capitalization currently at $2.37 trillion.
Bitcoin has pulled back to $60,878 at the time of writing, and a further correction looks likely. Ethereum has also dipped to $3,372 as it follows Big Brother, and markets cool after a week of rallying.
It is unlikely that that the options expiry will have much impact on spot markets, which are due for a correction.
The post How Will Crypto Markets React to $2B Bitcoin Options Expiry? appeared first on CryptoPotato.
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