In the dynamic world of cryptocurrencies, a significant event is unfolding today as a vast number of Bitcoin and Ethereum options are set to expire. This occurrence coincides with a robust performance by altcoins, signaling a potentially pivotal moment in the crypto markets.
Bitcoin is back to the $44,000, driving block trades of over $100 million in call options in the last hour, and the BTC market, which had been relatively quiet today, is once again in a bullish mood, with rallies in all major term IVs.
In contrast, ETH saw a divergence in trend,… pic.twitter.com/XyEMMTMAAh— Greeks.live (@GreeksLive) December 20, 2023
Today, approximately 25,000 Bitcoin option contracts, valued at $1.11 billion, are expiring. This figure represents a decrease from last week’s expiration volume. The put/call ratio stands at 0.70, suggesting a predominance of long positions nearing their end. Market activity is particularly heightened around the $40,000 and $45,000 levels, with a notable concentration of calls at the $50,000 strike price.
The options market presents a complex picture, with BTC’s price stabilizing at $44,000. However, there’s a marked preference for put purchases in both Bitcoin and Ethereum block trades, with over $100 million indicating that major investors are leaning towards short positions amidst high market optimism.
Deciphering the Impact of Bitcoin and Ethereum Options Expiring
Adding to the intrigue, Deribit’s data reveals that the total open interest in nominal value amounts to a staggering $16.4 billion. Ethereum options are also experiencing a significant expiry today, with around 217,000 contracts worth approximately $491 million.
Despite these expiries, the immediate impact on the spot markets appears subdued. Bitcoin’s price has seen a 2.5% increase this morning, pushing the total market capitalization to $1.74 trillion, a peak not observed since early May 2022. At present, Bitcoin is trading at $43,376, marking a 3.6% rise from last Friday, while Ethereum has climbed 2.31%, currently priced at $2,290.
In contrast to Bitcoin and Ethereum, altcoins such as Solana, Cardano, Avalanche, Polkadot, and Chainlink are experiencing the most substantial daily gains. Solana has notably outperformed BNB, ascending to the fourth rank in the crypto market standings.
This convergence of option expiries and altcoin strength may signal a shifting landscape in the crypto world, with potential risks of market volatility as investors navigate the expiry aftermath. The market’s resilience in the face of such a significant expiry event will be closely watched by traders and analysts alike.
