Bitcoin Options Expiry Day: $900 Million Contracts Set to Expire
Today is Bitcoin options expiry day, with nearly $900 million worth of BTC contracts expiring. Additionally, the crypto market continues to decline, with Bitcoin falling below $41,000 for the first time in a month. The question now is whether it will drop even further.
Smaller Expiry Event Compared to Last Week
This week’s expiry event involves around 22,000 Bitcoin options contracts. It is smaller than last week’s event, which saw $1.68 billion in contracts expire without much impact on the markets.
Bitcoin Options Notional Value and Put/Call Ratio
The notional value of this week’s expiring Bitcoin options contracts is $890 million. The put/call ratio stands at 1.1, indicating an equal number of bullish and bearish contracts being sold.
The max pain point, where most losses occur, is at $44,000, which is approximately $3,000 higher than the current spot market price.
Declining Volatility and Bearish Forces
Greeks Live noted that the impact of Bitcoin spot ETF launches has diminished. Volatility has significantly dropped, and major term implied volatility (IV) is also decreasing. Additionally, the put/call ratio reached 1.1 for the first time in the bull market, suggesting that bearish forces prevailed this week.
Long-Term Bullish Outlook
The passage of the Bitcoin Spot ETF looks to bring a lot of incremental capital to the crypto market in the long run…which is clearly a bullish tone this year.
Ethereum Options Expiry
Aside from Bitcoin options, there are also 211,000 Ethereum options about to expire. These derivatives have a put/call ratio of 0.55, a max pain point of $2,500, and a notional value of $520 million.
BTC Price Outlook
The hype surrounding ETFs seems to be fading for spot markets, which have declined by 3% to $1.7 trillion. Bitcoin has dropped over 15% since its yearly peak on January 10 and is currently trading at $41,143. It also dipped below $41,000 during early Asian trading on Friday.
If further declines occur, the asset may drop below $40,000 and find support around $38,000 in a widely predicted correction.
Hot Take: Will Bitcoin Continue to Decline?
Bitcoin’s options expiry day has arrived with nearly $900 million worth of contracts expiring. The crypto market is already experiencing a decline, with Bitcoin dropping below $41,000 for the first time in a month. The question now is whether this downward trend will continue or if Bitcoin will find support and rebound. With the expiry event being smaller than last week’s and the put/call ratio indicating bearish forces prevailing, it remains to be seen how the market will react. Keep an eye on the price action and any potential catalysts that may impact Bitcoin’s trajectory in the coming days.
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