Ethereum
$2.1 Billion Bitcoin and Ethereum Options Expire After US CPI Data
Today, $2.1 billion worth of Bitcoin (BTC) and Ethereum (ETH) options will be liquidated. The expiration of these crypto options contracts is particularly interesting, given that it will occur after the release of US Consumer Price Index (CPI) data.
How will this impact the prices of these digital assets and the broader crypto market? volatility?
How does recent US inflation data affect the crypto options market?
Approximately $1.18 million spread across 18,183 Bitcoin options contracts will expire. The tranche is very similar to the 18,359 contracts settled last week.
Deribit data indicates that Bitcoin’s put-to-call ratio is 0.62. This figure suggests a predominance of call options over put options.
Additionally, data shows that Bitcoin’s max issue is $63,000. The maximum problem is the price at which the asset will cause financial losses for the greatest number of holders.
Learn more: An Introduction to Crypto Options Trading
Expired Bitcoin Options. Source: Deribute
In addition to Bitcoin options, 321,925 Ethereum contracts will expire today. These expired contracts have a notional value of over $940 million, with a put-to-call ratio of 0.27 and a sweet spot of $3,000.
Greeks.live, a tool provider for crypto options traders, shared its views on the news expired options contracts. He assessed the impact of the release of inflation data in the United States in the crypto options market.
“The options market reacted significantly, with all major expiries [implied volatilities] IVs are quickly hitting new highs for the month, with the recent stable market pushing major IV futures options to new lows at some point this year, making them extremely profitable for buyers, with every recent event worth it to buy options for », Grecs.live note.
BeInCrypto reported earlier that the April CPI figure suggests that the U.S. inflation became slower. This new has had a positive impact on the crypto market.
Shortly after the data was released, the price of Bitcoin rose from $62,000 to $66,000. Top altcoins like Ethereum and Solana (GROUND) Also experienced significant gains.
Learn more: 9 Best Crypto Options Trading Platforms
Although options expirations can cause sudden price movements, the impact is usually temporary. The market usually stabilizes the next day, compensating for initial fluctuations. Still, traders should exercise caution analyze technical indicators and market sentiment before investing in this volatile environment.
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