Home Crypto Events Market Watch: $3 Billion Crypto Options Expiry – Will Bitcoin and Ethereum Surge or Correct?

Market Watch: $3 Billion Crypto Options Expiry – Will Bitcoin and Ethereum Surge or Correct?

Crypto Options

In the dynamic world of cryptocurrency, the spotlight is on today’s crypto options contract expiry, featuring a substantial batch of Bitcoin and Ethereum contracts. With Bitcoin recently touching an all-time high of over $69,000, the looming $3 billion expiry event raises questions: will it propel Bitcoin prices higher, or are we on the verge of a correction?

Bitcoin Options Expiry DetailsApproximately 29,000 Bitcoin options contracts are set to expire on March 8, carrying a notional value of around $2 billion. While this week’s expiry event is slightly less than the previous week’s, a colossal $6 billion event is on the horizon at the end of March.

The put/call ratio for today’s Bitcoin options expiry stands at 0.86, indicating a relatively balanced match between sellers of long and short contracts. The max pain point, where most losses occur upon expiry, is pegged at $60,000. Notably, there is significant open interest at the $65,000 and $70,000 strike prices, combining for a notional value of $1.9 billion, according to Deribit data.

Market Volatility and Options LandscapeMarket volatility has surged to its highest level in nearly a year, reported by crypto derivatives tooling provider Greeks Live. All major term implied volatility (IV) is trending significantly higher, with ultra-short-term IVs hitting 100%. Implied volatility, a metric gauging market expectations for future price movements, is a crucial factor in understanding the crypto options landscape.

Options volume and positions have risen, showcasing the advantages of options in providing protection for spot buyers and high leverage for long and short buyers. These tools offer high-profit/loss ratios, contributing to the complexity and dynamics of the crypto market.

Ethereum Options Expiry InsightsAlongside Bitcoin, approximately 270,000 Ethereum options are set to expire, featuring a put/call ratio of 0.55. These contracts carry a notional value of $1.05 billion, with a max pain point at $2,950. Deribit data highlights significant open interest at the $3,000 and $4,000 strike prices, with the latter holding a greater value at $826 million.

Crypto Market OutlookAs the crypto options expiry unfolds, the overall crypto market capitalization has experienced a 2.2% gain, reaching $2.67 trillion. Bitcoin is inching closer to $67,000 with a 1.8% daily increase, while Ethereum performs well with a 3.6% surge, surpassing $3,900 for the first time in over two years.

Binance Coin (BNB) and Shiba Inu (SHIB) have stolen the spotlight as the day’s biggest movers, with BNB adding 10% to reach $468 and SHIB surging 11%, closing in on a top-ten market cap position.

Final Thoughts: Navigating the Options Expiry LandscapeAs the crypto market navigates the $3 billion options expiry event, the stage is set for potential volatility and market movements. The interplay between Bitcoin and Ethereum, along with the broader market dynamics, will be closely monitored. Traders and investors brace for the impact of these expiries on prices, recognizing the intricate dance between options metrics, market sentiment, and the evolving crypto landscape.As the crypto market embraces the culmination of these options expiries, the community remains on the edge, awaiting the unfolding developments. The intricate dance between market sentiment, institutional maneuvers, and retail participation continues to shape the narrative. The coming weeks promise a riveting chapter in the crypto saga, filled with potential twists and turns.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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