Ethereum
$2.4 Billion Bitcoin and Ethereum Options Expire Today
Friday is here, which means it’s time for cryptocurrency options to expire. Settlement of $1.39 billion in Bitcoin (BTC) options and $1 billion in Ethereum (ETH) options is expected today. How will the prices of BTC and ETH react?
Approximately $1.39 billion worth of Bitcoin options contracts will expire today. The tranche is well below the 96,000 contracts settled last week.
Bitcoin faces $61,000 max problem as options expire
Today, May 3, 23,367 Bitcoin contracts worth $1.39 billion to expire. According to Deribit data, Bitcoin’s put-to-call ratio is 0.50. The maximum critical point – the price at which the asset will cause financial losses for the greatest number of holders – is $61,000.
Learn more: An Introduction to Crypto Options Trading
Bitcoin options expiry. Source: Deribute
Greeks.live also highlighted the current state of the crypto market via his official account on X (formerly Twitter).
“Bitcoin and the cryptocurrency market as a whole are still experiencing a deep declineas April became the biggest decline month in almost a year, Dvol went straight from 74% to 55% this week, volatility market expectations are falling extremely quickly […] In the short term, one can choose a lower IV and price and start buying options correctly and profitably right now,” note Greeks.live
In addition to Bitcoin options, almost 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 sweet spot of $3,000.
Despite the sharp correction experienced in recent days, the global cryptocurrency market saw an increase of 4% over the last 24 hours, bringing its total global capitalization to $2.32 trillion, according to CoinGecko. data.
Learn more: 9 Best Crypto Options Trading Platforms
Recently, Bitcoin saw a sharp decline that took it back below $57,000. However, it has rebounded and is around $59,324. For its part, Ethereum saw a surge by 1.5% to trade at $3,003.
However, it should be remembered that the impact of the expiration of the option 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 large price differences.
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