Key Bitcoin Options Expiry Event This Week
It is essential to note that approximately 24,300 Bitcoin options contracts are set to expire soon, with a notional value of roughly $1.4 billion. However, this week’s expiry event is relatively smaller compared to previous weeks, so its impact on the spot markets may be limited.
- The put/call ratio for Bitcoin options contracts is at 0.82, indicating a balance between long (call) and short (put) contracts.
- The max pain level for this week is at $59,500, slightly above the current spot prices following recent declines.
- There is significant open interest (OI) between $65,000 and $75,000, with nearly $700 million at the latter level.
- Moreover, there is more than $900 million OI at the $100,000 strike price, according to data from Deribit.
Analysis of Crypto Market Outlook
The overall market has experienced a 2.2% decline in the last 12 hours, resulting in the total market capitalization dipping to $2.15 trillion, marking its lowest point since the recent recovery phase.
- Bitcoin saw a dip to an intraday low of $56,650 before bouncing back to surpass $58,000 during the early hours of the Asian trading session on Friday.
- Ethereum also faced weakness, dropping to $2,532 before later rising above $2,600 in recent trading sessions.
- Altcoins, on the other hand, continue to struggle, with most displaying a bearish trend in the market.
Insights into Expiring Ethereum Options
In addition to the Bitcoin options, there are approximately 184,000 Ethereum options contracts set to expire, amounting to a notional value of about $470 million. These contracts have a put/call ratio of 0.80 and a max pain level set at $2,650.
- With Ethereum prices in proximity to this max pain point, the market is expected to remain dynamic as these options contracts reach their expiry.
Summary of Bitcoin Options Expiration Data
As of August 16, approximately 24,000 Bitcoin options contracts are nearing expiration, with a Put Call Ratio of 0.83 and a notional value of $1.4 billion. In comparison, there are also 184,000 ETH options contracts set to expire, with a Put Call Ratio of 0.80 and a notional value of $470 million.
Analysts anticipate a potential shift in market volatility following the settlement of these contract expirations.
Hot Take: Future Market Stability Predicted
The current data on expiring options contracts for both Bitcoin and Ethereum presents an opportunity for potential market stabilization. The decreasing volatility expectations, as indicated by the market data, could lead to a more consistent and stable trading environment in the coming days.
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