Will Crypto Markets March Higher When $1.4B Bitcoin Options Expire? CryptoPotato.
The crypto market is closely watching the expiry of $1.4 billion in Bitcoin options, which could influence price movements. This event, scheduled for May 24, 2024, has traders and investors speculating on its potential impact on Bitcoin's spot price.
The put/call ratio for these options stands at 0.88, indicating a relatively balanced market with slightly more calls (betting on price increases) than puts (betting on price decreases). The max pain point, where the most option holders would incur losses, is $67,000. Significant open interest (OI) exists at higher strike prices, notably $70,000 and $100,000, reflecting bullish expectations among traders (CryptoPotato) (Bitget).
The impact of such expirations on spot prices, however, tends to be muted. Historical data suggests that despite the large notional values involved, actual price volatility is often limited. For instance, total market capitalization saw a slight decline due to Bitcoin's minor price dip as the expiry approached, indicating that the immediate effect might not be substantial (Block Journal) (Bitget).
Additionally, a significant number of Ethereum options are also expiring, contributing to the overall market dynamics. The ongoing interest in Ethereum, buoyed by regulatory developments and speculative trading, further complicates the outlook (CryptoPotato).
Overall, while the expiry of these options could introduce some short-term volatility, the broader market impact might be restrained by various other factors, including overall market sentiment and regulatory developments.
