Will Crypto Markets Keep Falling As $1.2B Bitcoin Options Expire Today?
There are around 18,000 Bitcoin options due to expire on April 5 with a notional value of $1.23 billion.
However, today’s expiry event is much smaller than last week’s whopping $15 billion end-of-quarter crypto options expiry.
Moreover, markets have been weaker this week, with total capitalization falling 5% as $150 billion left the space.
Bitcoin Options Expiry
Today’s tranche of expiring Bitcoin options contracts has a put/call ratio of 0.64. This means there are about a third more call (long) contracts expiring than puts (shorts).
Additionally, the max pain point of today’s batch is $68,000, which is about $500 higher than current spot prices.
There is also around $900 million in open interest at the $70,000 strike price, indicating that the bulls are confident of a return to those levels. Additionally, there is $840 million in OI at a strike price of $100,000, according to Deribit. However, BTC appears to be in retreat at the moment.
Crypto derivatives tooling provider Greeks Live reported that the volatile week has ended in a short-sellers win before adding that selling calls have been the most dominant trade of the week, “with implied volatility across all major terms showing a significant decline.”
“Bitcoin is coming off the halving with sentiment support, other coins have fallen into a short-term bear market, and ETF inflows have slowed recently as the market is digesting the premium from ETFs.”
5 April Options Data 18,000 BTC options to expire with a Put Call Ratio of 0.64, Maxpain point of $68,000 and notional value of $1.2 billion. 270,000 ETH options are due to expire with a Put Call Ratio of 0.38, Maxpain point of $3,400 and notional value of $890 million.
