Will Crypto Markets Continue to Surge Amid $1.26B Bitcoin Options Expiring.
Around 18,500 Bitcoin options contracts are expiring on Friday, Oct. 18, with a notional value of around $1.26 billion.
Todayâs options expiry is very similar tolast weekâs, with declining volatility resulting in smaller expiry events. For this reason, the impact on spot markets is likely to be minimal.
However, there is a large $4 billion Bitcoin options expiry event on the last Friday of this month.Bitcoin Options Expiry
This weekâs tranche of Bitcoin options contracts has a put/call ratio of 0.86. This means that there are slightly more long (call) contracts expiring than shorts (puts).
Additionally, open interest (OI), or the value or number of open options contracts yet to expire, is still high at the strike price of $70,000, with over a billion dollars at that price, according to Deribit. OI is also over $1 billion at the $100,000 strike price, suggesting the derivatives bulls are getting confident again.
Analyst James Check observed that there was a new high in Bitcoin futures OI. He added that this means two things, high leverage means a higher likelihood of volatile shake-outs, but the bigger Bitcoin gets, the bigger this metric will be simply as a matter of scale.
New ATH in #Bitcoin futures open interest.
Two things: 1) High leverage means higher likelihood of volatile shake-outs. 2) The bigger Bitcoin gets, the bigger this metric will be simply as a matter of scale.
If youâre long spot, be patient, & donât FOMO Pullbacks will happen pic.twitter.com/7MoS6edDRV
â _Checkmate (@_Checkmatey_) October 17, 2024
In addition to todayâs Bitcoin options, there are 137,000 Ethereum options that are about to expire with a put/call ratio of 0.62 and a notional value of $367 million. This brings Fridayâs crypto options expiry to just over $1.6 billion for the week.Crypto Market Outlook
Total market capitalization has declined slightly today to $2.42 trillion despite Bitcoin hitting a ten-week high.
