15B IN CRYPTO OPTIONS SET TO EXPIRE: MARKET IMPACT AHEAD?

This Friday marks a significant event for Bitcoin options, coinciding with both the end of the month and the quarter, featuring a substantial volume of expiring BTC contracts.

On this day, March 29, the market sees a large-scale expiry of Bitcoin options, totaling approximately 135,250 contracts.

The combined notional value of today’s expiring Bitcoin derivatives is an impressive $9.74 billion, marking the most sizable expiration event of the year, as reported by Deribit.

Bitcoin Options Expiry Details

The ratio of puts to calls for today’s significant expiry batch stands at 0.85, indicating a slight preference for long positions over shorts. The $65,000 and $70,000 strike prices are especially noteworthy, each holding over a billion dollars in open interest (OI), with the latter being closer to the current market price.

The derivatives market is currently bullish, with significant OI positioned at higher strike prices, such as $75,000 and even reaching up to $100,000.

OI represents the total value or number of contracts that remain open and unsettled.

According to Deribit, the total value of all crypto options set to expire today was highlighted by Greeks Live, a provider of crypto derivatives analytics.

With a substantial quarterly delivery and $15 billion in crypto options on the line, “market participants are gearing up to adjust their positions, with BTC calls being particularly prominent in this movement,” the report mentioned.

The $70,000 strike price is notably competitive, currently holding the second-largest volume of options contracts, as per Deribit, slightly surpassing the volume at the $65,000 strike price.

Moreover, about 1.58 million Ethereum options contracts are also set to expire today, with a notional value of roughly $5.67 billion and a put/call ratio of 0.63, indicating a predominance of calls over puts. Significant OI is observed at the $4,000 and $3,000 strike prices, with the former commanding a greater notional value of approximately $700 million.

Potential Impact on Crypto MarketsWhile spot markets typically remain unaffected by derivatives expiries, the magnitude of today’s event could introduce some extra volatility.

The total market capitalization saw a 2% increase today, reaching $2.77 trillion during the morning trading session in Asia.

Bitcoin’s price has been testing the resistance level of just over $70,000 for the majority of the past day, where it currently stands.

Ethereum’s price has been oscillating around the $3,500 mark for the last 18 hours.

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