Analysis of Bitcoin Options Expiry and Market Stability
As a crypto enthusiast, you might be interested to know that approximately 21,000 Bitcoin options contracts are set to expire on Friday, April 12, with a total value of about $1.5 billion. This amount is slightly higher than the previous expiration event, highlighting the significance of this weekโs expiry.
In addition, the crypto markets have shown relative stability throughout the week, with the total market capitalization hovering around $2.7 trillion. Bitcoin continues to play a dominant role in driving market movements, suggesting that the outcome of the options expiry could have a notable impact on the overall market sentiment.
Insights into Bitcoin Options Expiry
When looking at todayโs expiring Bitcoin derivatives, it is essential to note that the put/call ratio stands at 0.62. This ratio indicates that there are nearly double the number of call (long) contracts expiring compared to put (short) contracts, signaling a bullish sentiment among traders.
- The max pain point for this expiry is identified at $69,000, which is slightly lower than the current spot prices of Bitcoin.
- Bulls seem to be dominating the derivatives markets, with a significant amount of open interest at strike prices above $70,000. Notably, strike prices of $80,000 and $100,000 have garnered substantial open interest, amounting to $880 million and $934 million, respectively, on Deribit.
โVolatility levels in the crypto market have risen significantly this week, with $70,000 and $3,500 [for ETH contracts] very much up for grabs,โ noted a provider of crypto derivatives tools, Greeks Live.
The observed implied volatility has seen notable declines across major terms, with emphasis on sell calls as the dominant trade of the month. Moreover, expectations surrounding the halving event appear to have been overstated based on current market trends.
12 April Options Data. 21,000 BTC options set to expire with a Put Call Ratio of 0.62 and a notional value of $1.5 billion. 230,000 ETH options due to expire with a Put Call Ratio of 0.49 and a notional value of $800 millionโฆ
Aside from the Bitcoin contracts expiring today, a total of 230,000 Ethereum options are also reaching their expiry. These contracts hold a notional value of $800 million, with a put/call ratio of 0.49 and a max pain point of $3,425.
Greeks Live suggests that while sentiment may have slowed down, the upcoming halving event could potentially support Bitcoinโs price in the short term.
Cryptocurrency Market Overview
Currently, cryptocurrency markets are experiencing relatively flat trading conditions, with the total market capitalization standing at $2.74 trillion at the time of this analysis.
- Bitcoin has managed to stay above the $70,000 mark, despite a brief dip below it on April 11. As of the Friday morning Asian trading session, Bitcoin was valued at $70,900, positioning it just 4.2% away from its all-time high.
- On the other hand, Ethereum saw a 1.3% decline to trade at $3,522. The altcoin market exhibited mixed performances, with minor gains or losses among high-cap tokens.
Hot Take: What Lies Ahead for Bitcoin and the Crypto Market?
As you navigate the dynamic world of cryptocurrencies, itโs essential to stay informed about critical events such as options expiries and their potential implications on the market. By understanding the nuances of these events, you can better assess the overall sentiment and make informed decisions regarding your crypto investments.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.