{"id":172306,"date":"2024-09-27T15:16:03","date_gmt":"2024-09-27T15:16:03","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=172306"},"modified":"2024-09-27T15:16:08","modified_gmt":"2024-09-27T15:16:08","slug":"7-7-billion-in-bitcoin-and-ethereum-options-expiry-could-trigger-market-shifts","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/7-7-billion-in-bitcoin-and-ethereum-options-expiry-could-trigger-market-shifts\/","title":{"rendered":"$7.7 Billion in Bitcoin and Ethereum Options Expiry Could Trigger Market Shifts"},"content":{"rendered":"
TL;DR<\/span><\/span><\/strong><\/p>\n Cryptocurrency options expiration<\/span><\/span><\/strong> is <\/span>a significant event<\/strong> <\/span><\/span>that<\/span><\/span><\/strong> often brings with it an increase <\/span><\/span>in<\/span><\/span><\/strong> market<\/strong> <\/span>volatility<\/span><\/strong><\/span>.<\/span><\/span><\/strong><\/p>\n <\/p>\n Today, approximately $7.7 billion<\/span><\/span><\/strong> worth of <\/span><\/span>Bitcoin<\/span><\/span><\/strong> and <\/span><\/span>Ethereum<\/span><\/span><\/strong> options are expected <\/span>to be liquidated, an amount that could have a considerable impact on the <\/span><\/span>prices<\/span><\/span><\/strong> of these two major <\/span><\/span>cryptocurrencies.<\/span><\/span><\/strong><\/a><\/p>\n Of this total, <\/span><\/span>$5.8 billion<\/span><\/span><\/strong> is in <\/span><\/span>Bitcoin<\/span><\/span><\/strong> options, while <\/span><\/span>$1.9 billion<\/span><\/span><\/strong> is in <\/span><\/span>Ethereum<\/span><\/span><\/strong>.<\/span><\/span><\/p>\n Traders <\/span>are keeping an eye on this event, as expiring options often influence <\/span><\/span>market<\/span><\/span><\/strong> behavior, especially in times of <\/span><\/span>increasing <\/span><\/span><\/strong>uncertainty<\/span><\/span><\/strong>.<\/span><\/span><\/p>\n According to data from <\/span><\/span>Deribit<\/span><\/span><\/strong><\/a>, 89,037<\/strong> <\/span><\/span>Bitcoin<\/span><\/strong> options <\/span><\/span>contracts<\/span><\/span><\/strong> are forecast to <\/span>expire today, which is a notable increase from <\/span>20,037 contracts<\/span><\/strong> the previous week.<\/span><\/span><\/p>\n With a <\/span><\/span>put\/call<\/span><\/span><\/strong> ratio of <\/span><\/span>0.64, the <\/span><\/span><\/strong>Bitcoin<\/span><\/span><\/strong> market <\/span>looks relatively balanced, albeit with a slight bias towards <\/span><\/span>call<\/span><\/span><\/strong> options, suggesting moderate <\/span><\/span>optimism<\/span><\/span><\/strong>.<\/span><\/span><\/p>\n The <\/span><\/span>point of maximum pain<\/span><\/span><\/strong>, located at <\/span><\/span>$59,000<\/span><\/span><\/strong>, implies that <\/span><\/span>prices<\/span><\/span><\/strong> could stabilize around this level, generating losses for both <\/span><\/span>bulls<\/span><\/span><\/strong> and <\/span><\/span>bears<\/span><\/span><\/strong>.<\/span><\/span><\/p>\n The Ethereum<\/span><\/span><\/strong> options market <\/span>also reveals interesting data, with <\/span><\/span>719,130 \u200b\u200bcontracts<\/span><\/span><\/strong> ready to expire and a <\/span><\/span>put\/call<\/span><\/span><\/strong> ratio of <\/span><\/span>0.47, indicating a strong preference for <\/span><\/span><\/strong>call<\/span><\/span><\/strong> options<\/span>.<\/span><\/span><\/p>\n This reinforces the perception that <\/span><\/span>traders<\/span><\/span><\/strong> have a <\/span><\/span>positive view<\/span><\/span><\/strong> of the asset’s future.<\/span><\/span><\/p>\n The influence of these contracts on the market is considerable, and as they are settled, a period of <\/span><\/span>volatility<\/span><\/span><\/strong> is anticipated, which could lead to <\/span><\/span>sharp movements<\/span><\/span><\/strong> in prices.<\/span><\/span><\/p>\n The <\/span><\/span>impact<\/span><\/span><\/strong> of these events on the <\/span><\/span>market<\/span><\/span><\/strong><\/a> is further amplified by the <\/span><\/span>macroeconomic context<\/span><\/span><\/strong>\n
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Market Outlook<\/span><\/span><\/h2>\n