Bitcoin Options Expiry
Today is the day of the big Bitcoin options expiry, with a total open interest of $730 million, including Ethereum options. Although crypto markets have been stagnant this week, there is speculation that today’s expiry event could have an impact.
Unlike last week’s expiry, which marked the end of the month and quarter, today’s event is not as significant. Around 14,000 Bitcoin options contracts will expire today, with a notional value of approximately $400 million.
The max pain point for today’s batch of Bitcoin options is $27,000, slightly lower than the current spot price. The max pain level represents the price level with the most open contracts and is where most losses occur when contracts expire.
The put/call ratio for today’s options is 0.89, indicating a balanced number of sellers of longs and shorts.
Ethereum Options Expiry
In addition to Bitcoin options, around 200,000 Ethereum options contracts are also set to expire today. These contracts have a notional value of $330 million, bringing the total for both Bitcoin and Ethereum to $730 million.
The put/call ratio for Ethereum options is 0.87, similar to that of BTC derivatives. However, it is unlikely that this week’s expiry event will have a significant impact on spot markets, which have been experiencing a decline.
Bitcoin has fallen 3.5% since its brief spike on Monday and is currently trading at $27,485. Without any additional catalysts, it may return to its support level at $27,000.
Ethereum has also experienced a decline of 6.6% since Monday and is currently trading at $1,620 during Asian trading hours. Support for ETH is just below $1,600.
Hot Take: Will the Options Expiry Event Impact Crypto Markets?
Today’s Bitcoin and Ethereum options expiry event may not have a significant impact on crypto markets that have been stagnant this week. However, there is speculation that with the high number of puts and deteriorating liquidity, a major market movement could occur this month. It remains to be seen how the expiry will play out and whether it will provide any impetus for the crypto markets to break out of their current state of stagnation.
Sources: X/@GreeksLive, BeInCrypto
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