How the expiration of $400 million options will affect the price of Bitcoin (BTC)

A large number of options on Bitcoin (BTC) and Ethereum (ETH) are expiring today. Let's figure out how this will affect the price of underlying assets.

Cryptocurrency options are derivative contracts that allow traders to buy or sell an asset at a specific price on a specific expiration date. If the option owner decides not to buy or sell cryptocurrency, he is not obligated to do so. This makes options more flexible than futures, which require you to close a position regardless of profit or loss. Where to trade cryptocurrency options: top 8 options.

The notional value of the soon-expiring 14,000 BTC contracts and 200,000 ETH contracts is $400 million and $330 million, respectively. We are looking into whether expiration can provoke increased volatility in the market and affect the price of the two largest cryptocurrencies by capitalization.

Q4 could be green for Bitcoin

According to Greeks.live, the BTC put to call option ratio is holding at 0.89. The maximum pain point is at $27,000. This is the price at which the asset will cause financial losses to the largest number of holders.