Crypto Market Prepares for $1.6 Billion Bitcoin and Ethereum Options Expiry, Anticipating Volatility
A significant amount of Bitcoin and Ethereum options, totaling $1.6 billion, are scheduled to expire today, September 13, 2024. This expiry includes $1.3 billion worth of Bitcoin options and an additional $298 million worth of Ethereum options, introducing a level of uncertainty into the cryptocurrency market.
The combined notional value of these expiring contracts, representing 23,000 BTC and 127,000 ETH, could potentially lead to heightened volatility in the upcoming days. Analysts from Greeks.live have highlighted that the put-to-call ratio for Bitcoin options stands at 0.87, indicating a preference for put options. Put options grant holders the right, but not the obligation, to sell BTC at a predetermined price. In comparison, Ethereum options have a put-to-call ratio of 0.73, with a “maximum pain point” at $2,400.
Bitcoin is currently trading around $58,200, showing a more than 3.5% increase over the past week. This rise follows a notable drop from approximately $64,000 towards the end of last month to a low below $53,000 at the start of September, before the cryptocurrency began its recovery.
The analysts have observed that the “maxpain point is once again keeping up with the price,” and September has been “weak as expected, with ETH particularly weak” against other digital assets. Additionally, recent reports indicate that Bitcoin holders have moved about $750 million worth of the leading cryptocurrency out of centralized exchanges in a single day this week, marking the largest net Bitcoin outflow since May.
Previous occurrences of similar outflows have often been succeeded by price increases, as reduced supply on exchanges can potentially drive prices up if demand remains stable or increases. The upcoming options expiry for Bitcoin and Ethereum presents a scenario that could impact market dynamics and contribute to increased market activity in the near future.
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