Can Bitcoin and Ethereum Options Expiry Reverse the Downward Momentum?
Today is Bitcoin options expiry day, and with the recent market volatility, there is speculation about whether this week’s contract expiries can reverse the downward momentum for BTC and ETH markets.
Key Points:
- Around 22,000 Bitcoin options contracts worth $580 million will expire today, with a max pain point of $29,500.
- The open interest is similar to last week’s expiry event.
- The put/call ratio for Bitcoin options is 0.55, indicating more longs expiring than shorts.
- Implied volatility for BTC and ETH rose sharply but is expected to fall back once markets stabilize.
- The Bitcoin options funding rate is below -0.01% for the first time since March 12 this year.
- 144,000 Ethereum options contracts with a notional value of $240 million are also expiring today, with a max pain point of $1,800.
- The put/call ratio for Ethereum options is 0.51, similar to Bitcoin options.
- Bitcoin is currently trading at $26,449, down 7.6% on the day, while Ethereum dropped 6.5% to $1,680.
It is unlikely that today’s options expiry will have a significant impact since the mass liquidation has already occurred. However, the market will continue to seek a new support zone.
Hot Take:
The high number of expiring contracts and the recent market volatility make today’s Bitcoin and Ethereum options expiry an important event to watch. While it may not reverse the current downward momentum, it will provide valuable insights into market sentiment and potential future price movements.
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