🔔 Bitcoin options expiration day, can the market see a turnaround?
This Friday is a special day because a large number of Bitcoin options expire. The market has been falling this week, and everyone is guessing whether these options expiration will bring about a big reversal in the market.
📈 On September 6, about 13,500 Bitcoin options contracts expired, with a total value of up to $776 million. Although this number sounds large, compared with last week, the number of expirations today is actually not large, so the impact on the spot market may not be too great.
📊 This week's options contracts show that there are slightly more call (long) contracts than put (short) contracts, with a put/call ratio of 0.82. Data from Deribit shows that many options have strike prices set at $70,000 and $75,000, and there are many people betting that the price can rise to $90,000 or even $100,000.
📉 However, crypto derivatives provider Greeks Live said that market confidence is weakening. They saw from the options data that the main indicators were bearish, implied volatility was also rising, and market expectations were negative in the short term.
💸 However, in addition to Bitcoin, there are about 126,000 Ethereum options expiring, with a notional value of $304 million. The put/call ratio of these contracts is 0.63, showing that the market is also cautious about Ethereum.
🌐 At the same time, the stock market is also falling, with the total market value evaporating 3% in one day, a drop of nearly $2.08 trillion. Bitcoin fell to around $55,500 on Friday morning, and the price has now rebounded to around $56,000.
🤔 Arthur Hayes, former CEO of BitMEX, is also pessimistic about the market. He predicted that the price of Bitcoin may fall below $50,000 this weekend, and he has already boldly shorted it.
💭 What do you think about the expiration of Bitcoin options and the future trend of the market? Do you think the market will rebound or continue to fall? Leave your insights in the comment section!
