Bitcoin
$2.4 Billion Bitcoin and Ethereum Options Expire Today
Friday is here, which means it’s time for cryptocurrency options expiries. Settlement of $1.39 billion in Bitcoin (BTC) options and $1 billion in Ethereum (ETH) options is expected today. How will BTC and ETH prices react?
Approximately $1.39 billion worth of Bitcoin options contracts will expire today. The portion is much lower than the 96 thousand contracts settled last week.
Bitcoin Faces $61,000 High Trouble Point at Options Expiration
Today, May 3, 23,367 Bitcoin contracts worth $1.39 billion are about to expire. According to data from Deribit, Bitcoin’s put-to-call ratio is 0.50. The maximum pain point – the price at which the asset will cause financial losses to the greatest number of holders – is $61,000.
See more information: An Introduction to Crypto Options Trading
Bitcoin options expiration. Source: Debt
Greeks.live also highlighted the current state of the crypto market through his official account on X (formerly Twitter).
“Bitcoin and the cryptocurrency market as a whole are still experiencing a deep setbackwith April becoming the deepest downturn month in almost a year, Dvol fell straight from 74% to 55% this week, volatility expectations in the markets are falling extremely fast […] In the short term, one can choose lower IV and price and start buying options properly and profitably now,” observed Greeks.live
In addition to Bitcoin options, nearly 334,248 Ethereum contracts will expire today. These expiring contracts have a notional value of approximately $1 billion, with a put-to-call ratio of 0.36 and a maximum pain point of $3,000.
Despite the strong correction experienced in recent days, the global cryptocurrency market experienced an increase of 4% in the last 24 hours, bringing its total global capitalization to US$2.32 trillion, according to CoinGecko data.
See more information: 9 Best Crypto Options Trading Platforms
Recently, Bitcoin saw a sharp drop that took it below $57,000. However, it has recovered and is now in the $59,324 range. In turn, Ethereum saw a surge 1.5% to trade at $3,003.
However, we must remember that the impact of the option expiration on the price of the underlying asset is short-term. Generally, the market will return to its normal state the next day and compensate for strong price deviations.
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