The last day of 2023 is a crucial one for the Bitcoin market, as a massive amount of options contracts are set to expire, potentially impacting the price and volatility of the leading cryptocurrency. According to data from Deribit and Greeks.Live, around 178,000 Bitcoin (BTC) options worth $7.59 billion will expire today, December 29.
Dec29 Options Data
178,000 BTC options are about to expire with a Put Call Ratio of 0.67, a max pain point of $33,000 and a notional value of $7.59 billion.
1.49 million ETH options are about to expire with a Put Call Ratio of 0.51, a max pain of $1,900 and a notional value of… pic.twitter.com/qdTFBWWtnx
— Greeks.live (@GreeksLive) December 29, 2023
This is the largest options expiry of the year, surpassing the previous record of $9.8 billion in June. The data also shows that the Put Call Ratio, which measures the ratio of bearish to bullish bets, is 0.67, indicating a slight dominance of call options. The maximum pain point, which is the price level that minimizes the value of both types of options, is $33,000.
The options expiry comes at a time when the Bitcoin market is anticipating a major catalyst in the form of the first spot Bitcoin ETF approval by the U.S. SEC. The regulator is expected to announce its decision on several ETF proposals by January 10, 2024.
If approved, the ETFs would allow investors to buy and sell Bitcoin directly through a regulated platform, boosting the liquidity and adoption of the cryptocurrency.
The Bitcoin Market Awaits the SEC’s Decision on the First Spot Bitcoin ETFs
On December 28, 2023, two of the ETF applicants, Ark Invest and 21Shares, filed amendment no. 5 to their form S-1, making some changes to the terms of the authorized participants who would create and redeem the ETF shares. This move suggests that the firms are preparing for a possible approval by the SEC, which has a deadline of December 29 to review their filings.
The Bitcoin price has been trading sideways in the past week, hovering around $43,000. Some analysts predict that the options expiry could trigger a short-term dip to $40,000, as some traders may try to push the price lower to profit from their put options.
However, others believe that this could be a good opportunity to buy the dip, as the long-term outlook for Bitcoin remains bullish, especially with the prospect of the ETF approval and the upcoming halving event in 2024.