Bitcoin Options Expiry
This Friday marks the expiration of around 108,000 Bitcoin options contracts, making it a significant event for the market. With a notional value of over $4 billion, this expiry is larger than previous ones. However, it remains to be seen whether it will have a substantial impact on the market.
The max pain price for this expiry is estimated to be around $33,000, which is lower than the current spot BTC price of $37,400. The put/call ratio for this batch of options is 0.83, indicating slightly more sellers of long contracts than shorts. This is the largest expiration until December 29.
In total, there is an open interest notional value of approximately $15 billion, reaching peak levels. Open interest refers to the number of open contracts that have yet to be closed or expire.
Ethereum Contracts Update
In addition to Bitcoin options, there are also Ethereum options expiring on November 24 with a notional value of $2.4 billion. The put/call ratio for these expiring ETH contracts is 0.71, indicating slightly more calls than puts compared to Bitcoin contracts. The max pain point for Ethereum options is $1,700.
There is significant interest in strike prices for Ethereum at both $1,900 and $2,300.
Crypto Markets Remain Steady
Despite recent turbulence in the news, crypto markets have held on to their recent gains and remained relatively flat over the last day. The fate of influential players like Changpeng Zhao does not appear to have significantly affected market participants.
Derivatives expiries typically do not have a major impact on spot markets, so it is likely that things will remain subdued over the weekend.
Hot Take: Bitcoin Options Expiry and Ethereum Contracts Update
This Friday’s Bitcoin options expiry, combined with the expiration of Ethereum contracts on November 24, presents an interesting scenario for the cryptocurrency market. With significant notional values and various strike prices, these events have the potential to create volatility. However, past experiences suggest that derivatives expiries rarely have a substantial impact on spot markets. Therefore, it is expected that the market will remain relatively stable in the coming days. It will be interesting to observe how these events unfold and whether they will influence the overall trajectory of Bitcoin and Ethereum.
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