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BTC Price Rises As 18,000 Bitcoin Options Expire Today, What’s Next?
The price of Bitcoin (BTC) has made a notable advance, marking a nearly 3% increase today following a period of slow trading. Meanwhile, the recent rally, after prolonged market volatility sentiment, precedes a major event: the expiration of 18,000 Bitcoin options. With options expiration taking center stage, market participants are closely watching the implications of this on BTC’s price trajectory and the broader cryptocurrency market.
Market analysis before options expiration
The recent rise in Bitcoin prices has caught the attention of investors, following volatile trading ahead of today’s expiry of options. In particular, as the market prepares for the expiration of 18,000 Bitcoin options, analysts at Greeks. live to provide insights into current options data. With a Put Call Ratio of 0.64, a Maxpain point at $62,000, and a notional value of $1.2 billion, anticipation is high regarding potential market movements after expiration.
Meanwhile, recent weakness in cryptocurrency markets, compounded by declining volumes and outflows from US BTC ETFs, has raised concerns. Despite a slight recovery in investor confidence due to the decrease in implied volatility (IV), uncertainties remain, particularly considering historical market trends in May.
While Bitcoin gets attention, Ethereum (ETH) is also in focus as 280,000 ETH options will expire today. With a Put Call Ratio of 0.74, a Maxpain point of $3,050, and a notional value of $800 million, market participants are closely monitoring the price dynamics of ETH alongside BTC.
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Implications for fund outflows
Despite the impending options expiration, both Bitcoin and Ethereum prices are rising. Furthermore, this increase in the price of Bitcoin comes despite reports of an outflow of $11.3 million Spot Bitcoin ETF in the United States on May 9th. In particular, the ongoing exodus from Grayscale continues to weigh on Bitcoin ETF flows.
However, as market participants grapple with these developments, the next few hours following options expiration will likely provide clarity on the near-term price trajectory of BTC and ETH. Traders remain alert and ready to react to any significant market movements resulting from this event.
According to CoinGlass data, the Open Interest on Bitcoin Futures (OI) rose 1.84% to 480.25K BTC or $30.28 billion today. At the same time, Ethereum OI advanced 0.58% to $10.76 billion.
Meanwhile, the Bitcoin price rose 2.74% and traded at $62,946.19, while yesterday’s trading volume increased 8.08% to $26.04 billion. On the other hand, the Ethereum price rose 1.80% to $3,034.26 before options expired.
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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-publisher at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions include breaking news stories, insights into AI-related developments, providing real-time cryptocurrency market updates, and presenting in-depth economic news. Rupam’s journey is marked by a passion for unraveling the complexities of finance and delivering impactful stories that resonate with diverse audiences.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for personal financial loss.