Can the Market Drop on $2.4B Crypto Options Expiry Event?

As a researcher with extensive experience in the cryptocurrency market, I find today’s Bitcoin and Ethereum options expiry event particularly intriguing. With approximately 23,000 BTC options worth $1.4 billion and 330,000 ETH options valued at around $1 billion set to expire, the potential impact on market sentiment is significant.

As a crypto investor, I’m keeping an eye on the upcoming expiration of around 23,000 Bitcoin options worth approximately $1.4 billion, scheduled for May 3rd. This event has historically influenced market sentiment. Although we’ve seen some recent dips in the crypto market, there’s been a slight recovery. Nevertheless, Bitcoin remains below the $60,000 mark, fueling short-term bearish feelings among investors.

It’s intriguing to note that Deribit reports substantial open interest for options with strike prices exceeding $70,000, with an impressive $661 million invested at the $100,000 mark. Although it seems unlikely that Bitcoin will hit such heights in the near future, this data underscores the resilient bullish sentiment amongst investors amidst current market fluctuations.

According to Greeks Live, a prominent crypto derivatives solutions company, this week’s introduction of spot crypto ETFs in Hong Kong failed to generate the significant increase in trading volume that some had anticipated.

In contrast, the analysis acknowledges that US Bitcoin ETFs experienced persistent withdrawals, mirroring the current market conditions.

As an analyst, I’d interpret this data as follows: Approximately 23,000 Bitcoin options are set to expire soon, with a put-call ratio of 0.49 and a max pain point at around $61,000. This equates to a notional value of approximately $1.4 billion. Similarly, over 330,000 Ethereum options are approaching their expiration dates, featuring a put-call ratio of 0.36 and a max pain point at roughly $3,000. The total notional value for these Ethereum options is around the same magnitude as the Bitcoin options, at approximately $1 billion.

— (@GreeksLive) May 3, 2024

As a crypto market analyst, I want to highlight an important development in the options market. Today, approximately 330,000 Ethereum options are set to expire, adding up to a substantial value of around $1 billion. Combined with the $1.4 billion worth of Bitcoin options reaching maturity today, we’re looking at a total contract expiry event value of approximately $2.4 billion in the crypto space.

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2024-05-03 10:44