Bitcoin Options Expiry
Today is a significant day for Bitcoin options expiration, as billions of dollars’ worth of BTC derivatives contracts are set to expire. According to Deribit, over 178,000 Bitcoin options contracts will expire today, making it one of the largest batches of the year.
The notional value of these contracts on Deribit alone is $7.6 billion, with additional contracts expiring on smaller options exchanges. The put/call ratio for the big Deribit slice is 0.67, indicating that there are more long contracts expiring than short contracts. There is particular interest in the $50,000 strike price with 24,600 calls.
Greeks Live noted that this year’s total delivery position of $11 billion is higher than last year’s $9.8 billion.
Ethereum Contracts Expiry
In addition to Bitcoin options expiring today, there are also 1.49 million Ethereum contracts expiring. These contracts have a notional value of $3.47 billion and a put/call ratio of 0.51. The max pain point for Ethereum derivatives is $1,900.
During Friday morning trading in Asia, spot markets are seeing a decline in total capitalization by 1.9%. Bitcoin has dropped 1.3% to $42,634, while Ethereum has shed 1.7% to trade at $2,349.
Market volatility typically decreases during the New Year period but could rise again due to anticipation of early January ETF approvals.
Hot Take: The Last Movement Before Year-End?
Friday’s Bitcoin options expiration day marks a significant event for the crypto markets as billions of dollars’ worth of BTC derivatives contracts expire. With such a large batch of contracts expiring, there may be one final movement before the end of the year.
This expiration includes over 178,000 Bitcoin options contracts with a notional value of $7.6 billion on Deribit alone. The put/call ratio and interest in certain strike prices indicate the market sentiment. Additionally, Ethereum contracts are also expiring, adding to the overall market activity.
As we approach the New Year, it will be interesting to see how market volatility evolves and whether early January ETF approvals will impact the crypto space.
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