CRYPTO DROPS CONTINUE AS $1.2B IN BTC OPTIONS EXPIRE?

The arrival of Friday signals another Bitcoin options expiration day. After a week marked by fluctuations, the crypto market braces for the impact of today’s expiring contracts.

Approximately 18,000 Bitcoin options are set to expire today, carrying a notional value of $1.23 billion.

This expiry is considerably smaller compared to the massive $15 billion crypto options expiration at the end of the last quarter.

The overall market has seen a downturn this week, with a 5% decrease in total capitalization as $150 billion exited the market.

Bitcoin Options Expiration Details

The current batch of Bitcoin options expiring today shows a put/call ratio of 0.64, indicating a higher number of call (long) contracts over puts (shorts) by roughly a third.

The maximum pain point for these contracts is set at $68,000, which is slightly higher than the current spot prices by about $500.

Notably, there’s close to $900 million in open interest for the $70,000 strike price, suggesting bullish expectations for a rebound to these levels. Furthermore, a significant $840 million in open interest exists for a $100,000 strike price, as per data from Deribit, although Bitcoin is currently on a downward trajectory.

According to Greeks Live, a provider of crypto derivatives analytics, the week’s volatility concluded in favor of those betting against the market, with the prevalent strategy being selling calls, “as implied volatility across all significant terms experienced a considerable drop.”

“Following the halving, Bitcoin retains sentiment support, whereas other cryptocurrencies have entered a short-term bearish phase, and ETF inflows have diminished lately as the market adjusts to the ETF premiums.”

Ethereum Options Expiry

In addition to Bitcoin, about 270,000 Ethereum contracts are also set to expire, featuring a put/call ratio of 0.38, a max pain point at $3,400, and a notional value standing at $890 million.

Outlook for the Crypto Market

Last evening saw a brief uplift in the crypto market, pushing the total capitalization to $2.67 trillion, only for the trend to reverse, wiping out the gains. A broader view indicates a consolidation phase around this mark since the beginning of March.

Bitcoin momentarily surged to $69,000 post mid-week decline but fell to $66,500 in the Friday morning Asian trading session, remaining about 10% below its peak.

Ethereum showed a less robust performance, currently down by 1% at $3,275.

The altcoin sector presented a varied landscape, with Toncoin (TON), Bitcoin Cash (BCH), and Ethereum Classic (ETC) recording gains, whereas Solana (SOL), Internet Computer (ICP), and Aptos (APT) experienced declines.

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