Volatility Ahead? Crypto Market Braces for $2.3 Billion $BTC and $ETH Options Expiry

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Approximately $1.5 billion in Bitcoin options and an extra $800 million in Ethereum options are due to expire on April 12, 2024. This event brings potential volatility to the cryptocurrency market.

Approximately $2.3 billion worth of Bitcoin and Ethereum contracts, totaling 21,000 BTC and 230,000 ETH, are set to expire soon. These contracts may cause market fluctuations in the upcoming days due to their significant value. As reported by analysts at Greeks.live, the ratio of put options to call options for Bitcoin contracts is currently 0.62. This indicates a preference for put options, which allow holders to sell Bitcoin at a predetermined price rather than buy it, suggesting a bearish sentiment in the market.

Analysts pointed out that the price causing most Bitcoin options to expire without value was estimated at around $69,000. For Ethereum options, they identified a put-to-call ratio of 0.49, meaning more call options than put options existed, with the maximum loss point being approximately $3,425.

On the 12th of April, approximately 21,000 Bitcoin options will reach their expiration date. The Put-Call Ratio for these options is 0.62, meaning that put options (betting on a decrease in price) represent 62% of the total open interest. The Maxpain Point, which represents the price at which the majority of options are expected to be profitable, stands at around $69,000. The notional value of these Bitcoin options amounts to approximately $1.5 billion.

— Greeks.live (@GreeksLive) April 12, 2024

At present, Bitcoin is priced at approximately $70,700 based on current market trading, representing a minimal increase of roughly 0.4% during the preceding 24 hours. Conversely, Ethereum is being exchanged for about $3,515 per token, following a loss of around 1.3% over the same time frame, according to information from CryptoCompare.

This week, analysts reported an increase in crypto market volatility, with Bitcoin fluctuating between $66,000 and $72,000, and Ethereum staying around $3,500. Lately, short call options, a bet on the price dropping, have become the preferred trading choice for many investors in November.

In addition, the authors believe that the hype surrounding the Bitcoin halving, which reduces by half the rewards given to miners for discovering new blocks and consequently decreases the amount of freshly minted Bitcoin, may have been exaggerated.

The analysts determined that due to a recent decrease in investment inflows towards Bitcoin ETFs, along with fewer new market opportunities and a more muted investor mood, selling Bitcoin over a medium-term period could be profitable, while short-term investments were also viable given the upcoming Bitcoin halving event.

According to CryptoGlobe’s latest article, a well-respected cryptocurrency analyst with a track record of accurately predicting market bottoms during bear markets, including in 2018, has shared Bitcoin’s potential worst-case scenario. However, despite this bleak outlook, the analyst believes there could still be significant price increases.

The analyst pointed out that his assessment is that Bitcoin might experience its maximum downside by dropping below its current peak. Simultaneously, he anticipates investors will seize this opportunity to purchase at lower prices, believing the cryptocurrency will continue to climb as they view it as a triangle breakout.

According to his statement, Bitcoin’s price may retreat to the lower part of its range once more before experiencing another rise. Based on his predictions, Bitcoin could dip down to approximately $64,000 prior to climbing up to around $82,000.

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2024-04-12 15:25