Bitcoin (BTC) Options Worth $640 Million Set to Expire

Alex Dovbnya

As Bitcoin options with a notional value of $640 million approach their expiration date, the crypto community watches intently

Bitcoin, the flagship cryptocurrency, is about to see a shakeup as options contracts with a significant notional value are on the cusp of expiration. 

With investors and traders across the world keenly watching, the fallout from this significant expiration could have potential implications on the price and volatility of the flagship digital currency.

A close look at the options 

As per data shared by Greeks.live, approximately 24,000 BTC options are poised for expiration. These options have a notional value pegged at $640 million. 

Notably, the put-call ratio for these options stands at 1.23, indicating a slightly higher number of put options compared to call options. 

The max pain point, a term used to denote the price level at which these options would cause maximum financial loss for option holders, is set at $27,000. In terms of volume, weekly positions in BTC options have surged by a notable 70% this week, with put positions comprising 60% of the total. 

Such a skew towards put options is a relatively rare occurrence. Meanwhile, options for Ethereum (ETH), Bitcoin’s closest rival, are also set to expire, but Bitcoin remains the market’s leader.

The Bitcoin price holding steady 

Despite the looming options expiration, Bitcoin’s price remains relatively stable. Currently trading at $26,785, the price has seen a minor fluctuation within a 24-hour range of $26,570 to $26,911. This stability is noteworthy considering the scale of the expiring options. 

Bitcoin’s market capitalization stands robust at approximately $522.65 billion, with a 24-hour trading volume of about $10.53 billion. 

The coin’s current remarkable stability might be signaling investor confidence or perhaps a wait-and-see approach.

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Alex Dovbnya