$1.26B in Bitcoin Options Contracts Expire as BTC Crosses $68K

The enduring uptrend in the spot market has impacted crypto traders betting on the price trajectory of Bitcoin in the derivatives market.

Amid Bitcoin’s push above the $68K level, a large volume of bets from the options market has become worthless. According to data from Greeks.live, 11,000 Bitcoin options contracts reached expiration today, October 18.

$1.26B Bitcoin Options Contracts Expired Amid $68K Surge

The expired contracts carry a combined notional value of over $1.26 billion. The Put/Call ratio for Bitcoin was 0.78. This indicates a relatively bullish outlook, with 78 put options (bearish bets) for every 100 call options (bullish bets).

Also, the “maximum pain” point for expired Bitcoin options contracts was $64,000. This means most options holders would have incurred the greatest losses if the options had expired with Bitcoin at this price.

Bitcoin is currently trading at $68,150, reflecting a 2% gain in the last 24 hours and an 11% increase over the past week. Bitcoin’s week-long uptrend has impacted Ethereum. However, the altcoin king shows weaker daily and weekly gains than Bitcoin. 

Nonetheless, as Ethereum trades at $2,650 with a 1.3% growth today, a substantial volume of Ethereum option contracts is also expiring.

Expiring Ethereum Options Contracts

Specifically, 138,000 Ethereum options contracts expired today, with a notional value of $360 million. The Put/Call ratio for Ethereum was slightly lower than Bitcoin’s at 0.61. This suggests an even more optimistic market sentiment, with only 61 puts for every 100 calls. Ethereum’s maximum pain point was $2,500.

Overall, market sentiment appears to lean bullish for Bitcoin and Ethereum, with call options outpacing put options, more substantially in the case of Ethereum.

Meanwhile, Greeks.live noted that the volume of Ethereum options expiring this week is just under 30% of Bitcoin’s. It attributed this disparity to Bitcoin’s significant rally this week, while Ethereum’s performance was comparatively weaker.

Moreover, the analysis added that in terms of implied volatility (IV), Ethereum’s flat option IV for January is only 4% higher than Bitcoin’s and continues to decrease.

Reflecting on the excitement surrounding the launch of the Ethereum spot ETF in July, Greeks.live argued that the opportunity was not fully capitalized upon. The once-vibrant momentum has faded. In just months, Ethereum, once hailed as the “world’s computer,” has shifted in perception, becoming more like the “world’s abacus,” according to Greeks.live.