Bitcoin Options Expiry
Today marks the expiry of around 29,000 Bitcoin options contracts, which is significantly lower than last week’s expiration event. The notional value of these expiring contracts is approximately $1.13 billion. The max pain price for this event is around $37,000, slightly below the current spot BTC price.
The put/call ratio for today’s Bitcoin options batch is 0.58, indicating that there are more sellers of long contracts than shorts.
December 29 will see the largest expiration event of the month, with around 150,000 contracts expiring.
Greeks Live Observations
Greeks Live has observed a decrease in market volatility this week, with BTC facing resistance at $38,000 multiple times. The options data suggests that the main trades have been focused on calls, with Maxpain points close to the strike price. However, fewer investors are bullish on the short-term surge and are instead anticipating January ETF approvals.
Ethereum Derivatives Outlook
In addition to the Bitcoin options, approximately 230,000 Ethereum contracts are set to expire today. These contracts have a notional value of $470 million, a put/call ratio of 0.49, and a max pain point of $2,100.
While there has been minimal interest in ETH contracts, all attention remains on BTC and the potential approval of spot ETFs.
Crypto Market Performance
Crypto markets have seen a 1% increase today, bringing total capitalization back to its 2023 high of $1.5 trillion. Bitcoin has also experienced similar gains in the past few hours, reaching a price of $38,132. However, it has faced resistance at this level over the past week. Ethereum has performed better with 2.8% gains, reaching $2,093. Most altcoins have remained relatively flat, except for Dogecoin, Avalanche, and Polkadot, which have seen gains between 3.5% and 6%.
Hot Take: The Impact of Bitcoin Options Expiry
The Bitcoin options expiry event may contribute to the momentum in the crypto markets. With a significant number of contracts expiring and the potential for market movements based on the max pain price, traders and investors will closely monitor the outcome. Additionally, the observed decrease in market volatility and the focus on calls suggest a cautious sentiment among investors. As attention remains on BTC and the possibility of spot ETF approvals, the expiration of both Bitcoin and Ethereum contracts will continue to shape market dynamics.
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