If the expiration of 2.6 billion dollars worth of Bitcoin options occurs, will this event potentially push the markets upward?
Bitcoin Options on the Horizon: Preparing for May 9th and Beyond
Here we go, buddy! Prepare to dive into the rollercoaster ride that is Bitcoin options expiry. On Friday, May 9, over 26,000 Bitcoin options contracts, worth approximately $2.57 billion, will be squaring off. Buckle up, because the crypto world is heating up!
What's Happening This Week?
You might think, "Hey, isn't this week's expiry just a carbon copy of last week's event?" Well, you could be right. Derivatives trading in crypto remains relatively subdued. However, with spot markets skyrocketing, the game could change in a heartbeat!
Bitcoin Options Expiry Unpacked
The put/call ratio for this week's Bitcoin options tranche is 0.91, indicating that short and long contract sellers are relatively evenly matched, with a slight edge towards puts. The max pain point for these options sits at a hefty $93,000—yikes! This is where most losses will be suffered if the price doesn't cooperate come expiration.
Interestingly, the highest open interest, or the value or number of BTC options contracts yet to expire, is concentrated at the $100,000 strike price, with around $1.8 billion wagered on those bullish bets on Bitcoin's future price.
On the bearish side, there's more than $1 billion in open interest at the $80,000 and $85,000 strike prices, but don't hold your breath, bears; those could be a while in coming with markets rocketing skyward.
A Shift in the Tide
Remember that update Greeks Live posted earlier this week? It described the market as "boring chop," with traders aiming to benefit from time decay while protecting against downside risk. Well, that was then. With this week's amazing 5% surge and Bitcoin breaking out of its range-bound channel, things are looking decidedly more exciting!
The Future is Bright – or is it?
In addition to this week's portion of Bitcoin options, nearly 164,000 Ethereum contracts will also expire on Friday, valued at around $257 million and boasting a max pain point of $1,800 and a put/call ratio of 1.2. All told, today's crypto options expiry notional value totals a not-too-shabby $2.8 billion.
Market Outlook – Cap on the Rise
As of today, total capitalization has soared to a three-month high of $3.33 trillion, mainly fueled by Bitcoin and Ethereum. Bitcoin prices have experienced a mind-boggling 4.3% increase in the past 24 hours, reaching an intraday high of $103,461 during late trading on Thursday. Ethereum, on the other hand, has been the star of the show, surging more than 20% to exceed $2,200 in early Friday trading.
In the Hunt for Gains
While Bitcoin has been the darling of the crypto world, other altcoins are also enjoying impressive gains. Dogecoin, Cardano, Sui, Chainlink, Avalanche, and Stellar are all up double digits today.
Never a dull moment in the world of crypto, huh? So, fasten your seatbelts, dear sir, and let's see what the market has in store for us in the coming days!
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Happy trading, fellow crypto enthusiasts! 🤖🚀💸
Source: Finance Magnates, Cointelegraph
[1] The Pectra upgrade is a network-wide upgrade for Ethereum that aims to improve its scalability and efficiency.[2] Based on the most recent data available at the time of rewrite.[3] Based on data from Deribit and Cointelegraph.
- With over 26,000 Bitcoin options contracts, worth approximately $2.57 billion, expiring on May 9, the crypto world is set for a rollercoaster ride.
- The put/call ratio for this week's Bitcoin options tranche is 0.91, indicating that short and long contract sellers are relatively evenly matched, with a slight edge towards puts.
- The max pain point for these Bitcoin options sits at a hefty $93,000, where most losses will be suffered if the price doesn't cooperate come expiration.
- The highest open interest is concentrated at the $100,000 strike price, with around $1.8 billion wagered on those bullish bets on Bitcoin's future price.
- Nearly 164,000 Ethereum contracts will also expire on Friday, with a max pain point of $1,800 and a put/call ratio of 1.2.
- As of today, the total capitalization has soared to a three-month high of $3.33 trillion, mainly fueled by Bitcoin and Ethereum.
- While Bitcoin has been the darling of the crypto world, other altcoins like Dogecoin, Cardano, Sui, Chainlink, Avalanche, and Stellar are also enjoying impressive gains.
