Bitcoin Options Expiry
This week, around 25,000 Bitcoin options contracts are set to expire, with a notional value of $1.11 billion. The put/call ratio indicates that more longs (calls) are expiring than shorts (puts). There is significant interest at strike prices of $40,000, $45,000, and $50,000.
According to Deribit, the options market is showing mixed signals as BTC hovers around $44,000. Notably, large investors are adding to their bearish positions, which could indicate downside risk for traders.
Crypto Market Outlook
Today’s expiring options are unlikely to have a significant impact on spot markets. The overall crypto market has seen gains of 2.5%, reaching a total capitalization of $1.74 trillion.
Bitcoin has returned to resistance at $44,135 and has gained 1.4% since last week. Ethereum is up almost 3% and is trading at $2,259.
However, it is the altcoins that are leading the market today with significant gains for Solana, Cardano, Avalanche, Polkadot, and Chainlink.
Hot Take: Will Bitcoin Benefit from Expiring Options?
As Bitcoin options approach their expiry date, there is anticipation in the market about how this will impact the price of Bitcoin. While the current batch of expiring contracts is smaller than previous weeks and not expected to have a major effect on spot markets, there is still interest at key strike prices. Traders should be cautious of potential downside risk as large investors increase their bearish positions. Overall, the crypto market is performing well with strong gains among altcoins. Whether Bitcoin will be boosted by the expiring derivatives remains to be seen, but it’s worth keeping an eye on the market for any potential shifts in sentiment.
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