Bitcoin Options Expiry Approaching: Could it Influence Financial Markets? (Anticipated Volume: $2.5 Billion)
A heap of around 27,000 Bitcoin options contracts, valued at approximately $2.54 billion, are about to go ka-boom on May 2. The crypto derivatives market's been rather placid lately, but things could heat up as spot markets bounce back.
Putting It Out There: Bitcoin Options Expiry
This upcoming round of Bitcoin options has a put/call ratio of 1, meaning the short and long contract sellers are neck and neck. And guess where the most losses'll be incurred if things go sideways? Bingo—$90,000, baby!
Now, more open interest (OI) happens at the $100,000 strike price, with a whopping $1.5 billion on the line. That bullish sentiment's clear as day, with derivatives speculators betting on rates reaching new highs.
But don't count the bears out yet! There's still a fair chunk of OI at $80,000 and $65,000. Guess who's keeping their short options open? Yup, the bears, according to Deribit.
Earlier in the week, derivatives provider Greeks Live David Copperfield-ed things up saying, "implied volatility is on a downward spiral, with recent drops especially evident in BTC." The analysts added that the market isn't just playing it cool, it's downright chilly, not expecting much pizzazz in the future.
The Bitcoin price's been bobbing around $97,000 lately, but the overall sentiment's about as lukewarm as my morning coffee.
Deribit nodded in agreement, saying "derivatives markets are still as calm as a cucumber," before adding, "BTC volatility's low, short-term patterns are neutral, and fees are practically free, post some minor spikes."
In addition to these Bitcoin options, around 175,000 Ethereum contracts are also expiring this Friday, valued at $317 million, with a max pain point of $1,800 and a put/call ratio of 0.87. When you add up the notional value, we're talking about an impressive $2.85 billion in crypto options expiry this Friday.
Cryptoverse Outlook
Crypto markets are closing the week on a high note, with total capitalization nudging up to hit $3.12 trillion after a week of sideways dancing. Bitcoin's stolen the limelight yet again, reaching a high of $97,340 on Thursday before dipping to $97,000 during the Asian trading session on Friday. Despite the little dip, it's still up 3% from the same time last week.
Ethereum's kicked a minor goal, reaching $1,860, its highest level in a month, but it's still playing at crypto winter levels despite a 2% gain.
Dogecoin, Avalanche, Litecoin, and Hyperliquid are the new rockstars in town today.
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- With Bitcoin options contracts valued at around $2.54 billion ready to expire on May 2, the crypto derivatives market is brimming with anticipation, particularly at the $100,000 strike price.
- The put/call ratio for this Bitcoin options round is 1, indicating a balance between short and long contract sellers, but potential losses could reach $90,000 if the market turns bearish.
- Open interest is also quite significant at the $80,000 and $65,000 strike prices, suggesting that bears are keeping their short options open, according to Deribit.
- In the broader crypto markets, the overall sentiment remains lukewarm, with the Bitcoin price hovering around $97,000 and the total capitalization reaching $3.12 trillion after a week of sideways movement.
- Ethereum, too, is expiring around 175,000 contracts valued at $317 million, with a max pain point of $1,800 and a put/call ratio of 0.87.
- Aside from these major platforms, altcoins like Dogecoin, Avalanche, Litecoin, and Hyperliquid are making waves in the crypto market.
- For those interested in investing in Bitcoin and other cryptocurrencies, exclusive offers from Binance and Bybit are available, offering attractive rewards for new users.
