Bitcoin Options Expiry Day: Will the Derivatives Deluge Make a Difference?
Bitcoin options expiry day has arrived, with a significant number of contracts set to expire this week. Here are the key points to know:
– 72,000 Bitcoin options contracts, valued at $1.91 billion, will expire on Aug. 25.
– The open interest for these contracts is higher than previous weeks’ expiry events.
– The max pain point for this week’s contracts is $28,000, above current spot prices.
– The put/call ratio is 0.55, indicating more long contracts expiring than short contracts.
– Market analysis suggests that BTC and ETH may move away from the max pain point after this month’s expiry.
– The market has maintained high implied volatility levels, despite lower volatility this week.
– $26,000 has become a strong support level for Bitcoin.
Ethereum Options Outlook
In addition to Bitcoin, Ethereum options contracts are also expiring this week. Here are the key points for Ethereum:
– Around 536,000 Ethereum options contracts, valued at $890 million, will expire.
– The max pain point for these contracts is $1,800.
– The put/call ratio is 0.39, indicating more calls being sold than puts.
– Market momentum is currently bearish following an 11% slump in the past two weeks.
– BTC is at risk of falling below $26,000 again if selling pressure continues.
– Market sentiment is at ‘Fear’ with a score of 39, suggesting low confidence.
Hot Take
The expiry of Bitcoin and Ethereum options contracts may impact the market, but it remains to be seen how significant the effects will be. Traders and investors should closely monitor the price movements and consider the implications of the expiry. It is important to stay informed about market trends and developments to make informed decisions in the crypto space.
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