Summary:

•18,000 BTC and 270,000 ETH options contracts will expire on April 5.

•The total value of these expiring options contracts exceeds $2 billion.

•As BTC drops below $70,000, options traders are becoming increasingly bearish.

With more than $2 billion worth of Bitcoin (BTC) and Ethereum (ETH) options contracts set to expire on April 5, the market is paying attention to the price volatility and impact of the two largest cryptocurrencies by market capitalization.

It is reported that the notional value of Bitcoin and Ethereum option contracts is US$1.2 billion and US$890 million respectively.

Will this expiration trigger increased market volatility and affect the prices of the two largest cryptocurrencies by market capitalization?

Shorts dominate cryptocurrency options market

Options traders have become increasingly bearish as the price of Bitcoin fell below $70,000. Options allow traders to buy or sell an asset at a specific price on a specific date, a feature that provides flexibility to holders. Unlike futures, option holders are not obligated to buy or sell.

According to Greeks.live, Bitcoin's put/call ratio is currently 0.64, with a maximum pain point price of $68,000, meaning that this price could cause the most holders to suffer significant financial losses. Similarly, Ethereum's put/call ratio is 0.8, with a maximum pain point of $3,400.

Analysts pointed out that the crypto market had a weak week, with the $70,000 mark ending in victory for short-term short sellers, while selling call options became the top trade of the week, with implied volatility (IVs) across all major tenors. dropped significantly.

This week has been quite tough for Bitcoin, with the price failing to stay above $70,000 and falling below $65,000. As of now, Bitcoin is trading around $67,500.

Ethereum also showed similar dynamics, with prices falling below $3,250 earlier this week. In addition, analysts said that Bitcoin has gained sentiment support after the halving, while other cryptocurrencies have entered a short-term bear market, ETF inflows have also slowed recently, and the market is digesting the premium of ETFs.

Market performance on many contract expiration dates is difficult to predict, especially if there are events that impact the news background. Nonetheless, traders must monitor market conditions closely to ensure that increased volatility does not lead to unexpected stop-loss orders or poor trading decisions.

However, market participants should keep in mind that the impact of option expiration on the price of the underlying asset is short-term. #比特币 　#以太坊 #期权 #加密市场