Bitcoin options contracts expire on Friday, and a big batch is being prepared today.
Bitcoin broke the $64,000 mark this week, but will this major options expiration event lift the #bitcoin price or will it begin to correct?
Some 32,200 bitcoin options contracts are redeemed on March 1, making this week's event the second largest of the month, as another major event worth more than $6 billion occurs at the end of March.
According to Deribit, a #cryptocurrency derivatives provider, the notional amount of bitcoin options that mature today is US$1.96 billion.
Furthermore, the put/call ratio is 1.49, which means that there are more short sales (puts) than long sales (calls). This suggests that derivatives traders tend to correct the market. The maximum pain point, that is, the price at which there will be the greatest losses at maturity, is $BTC The strike price of $60,000 remains very significant, with 15,329 options currently on the market with a notional amount of $934 million. Furthermore, the put/call ratio at this strike price is only 0.20, with bulls significantly outnumbering bears in terms of shorts at this strike price.
According to Deribit, interest in the $65,000 strike is also high, with 14,137 calls reaching a notional amount of $861 million.
Deribit also reported record open interest balances, which topped $29 billion on Feb. 29. Open interest is the total number of open derivatives contracts, including options and futures.
"This morning, trading volume reached $12.4 billion in 24 hours, an all-time record," the company said.
According to cryptocurrency derivatives software provider Greeks Live, customers traded $620 million worth of options on Feb. 29, a record for the platform.
In addition to the large number of bitcoin options expiring today, 235,000 #Ethereum contracts also expired. The face value is $793 million and the put/call ratio is 0.88.
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