$1.67 Billion in Bitcoin and Ethereum Options Poised to Expire Amid Bullish Signals

A significant event is on the horizon for and that has both traders and analysts on the edge of their seats. According to a recent tweet from Greeks.live, a notable financial analytics firm focused on cryptocurrency markets, an enormous volume of cryptocurrency options is set to expire soon.

This event encompasses 21,000 Bitcoin options and 200,000 Ethereum options, representing a notional value of approximately $1.67 billion. The upcoming expiry could have substantial implications for the market, given the current dynamics and recent price movements.

The Bitcoin options set to expire boast a Put/Call Ratio of 0.9, with a Maxpain point pegged at $46,000. The Maxpain point is the price level at which the largest number of options (both puts and calls) would expire worthless, minimizing the payout for option holders and potentially maximizing the profit for option writers.

With a notional value of $1.1 billion, the impact of this expiry could be significant, particularly as Bitcoin has recently seen a surge in price, topping $52,000. This represents a 20.64% increase over the last 30 days, although the price has slightly dipped by 0.54% to $51,956.

Ethereum’s upcoming options expiry is also noteworthy, with 200,000 ETH options nearing their expiry date. These options have a Put/Call Ratio of 0.62 and a Maxpain point of $2,400, with a notional value of $570 million. Ethereum’s market dynamics are also similar to Bitcoin’s as ETH price has topped $2,800. Moreover, the implications of this options expiry are equally critical for ETH’s price trajectory and market stability.

A Complex Interplay

The crypto market has been particularly buoyant this week, with major term implied volatilities (IVs) indicating a clear upward trend. However, the derivatives market, including options and futures, has been relatively flat, attributed partly to the Chinese New Year holiday. This period typically sees a slowdown in trading activity, as investors take a break.

However, with the holiday coming to an end, a resurgence in trading volume and market activity is expected, especially from Chinese investors returning to the fray. The anticipation surrounding the options expiry is heightened by the current bullish sentiment in the crypto market.

Investors and traders are increasingly betting on Bitcoin reaching new all-time highs before its next halving event, reflecting a robust confidence in the market’s growth potential. Overall, the imminent options expiry is a critical juncture for the cryptocurrency market, with potential implications for price volatility and market dynamics.

As the expiry date approaches, the market is likely to witness increased activity, with potential shifts in the pricing of both Bitcoin and Ethereum. The impact will depend on various factors, including the final settlement prices, the distribution of open interest across different strike prices, and the overall market sentiment.