$1.1B Bitcoin Options Expiring Today: What Comes Next?

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As a researcher with several years of experience in the cryptocurrency market, I’ve seen my fair share of price fluctuations and contract expirations. Based on the current data, it seems that this week’s contracts are worth slightly less than last week’s at around $1.15 billion, which could be a sign of decreasing investor confidence.

Approaching $1.15 billion is the value of contracts set to expire this week, representing a slight decrease from last week’s figure. The cryptocurrency market exhibits intense buying activity around the $70,000 and $100,000 price points, indicating optimistic expectations for Bitcoin‘s price increase. However, there is also considerable demand for selling Bitcoin at those prices.

In the Bitcoin market, there’s been a decrease in trading activity and a corresponding decline in price. This trend has led to reduced confidence among investors as indicated by the falling implied volatility (IV). Although IV currently sits below its typical level, it is unlikely to fall significantly further.

On May 10th, approximately 18,000 Bitcoin (BTC) call and put options with a combined value of around $1.2 billion are set to expire. The put-call ratio for these options stands at 0.64, while the max pain point is estimated at $62,000 per BTC. Similarly, approximately 280,000 Ethereum (ETH) call and put options with a notional value of $800 million are also due to expire on the same date. The put-call ratio for these ETH options is 0.74, while the max pain point is calculated at $3,050 per ETH.— Greeks.live (@GreeksLive) May 10, 2024

As a researcher studying Bitcoin’s historical performance, I have observed that the cryptocurrency has not fared well under May’s market conditions in the past. To mitigate potential risks during this period, some experts recommend purchasing put options or other derivative contracts that profit from a decrease in Bitcoin’s price.

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2024-05-10 16:52