Approximately 24,000 Bitcoin options contracts, worth nearly $640 million, will expire on October 13. In addition to Bitcoin, 190,000 Ethereum options contracts will also expire, with a critical high of $1,600. The expirations are unlikely to significantly impact cryptocurrency spot markets.
Cryptocurrency markets have faced a challenging week, with major players experiencing a slowdown. Now the focus is on an impending derivatives expiration event, with market participants wondering whether it will bring much-needed change.
It’s Friday again, which means Bitcoin options expiration day, and today’s stretch could induce a small move in the market. This one has been on the defensive all week as big companies pull back: Will the derivatives expiration event make any difference?
On October 13, around 24,000 Bitcoin options contracts with a face value of around $640 million will expire. Additionally, this options expiration event is approximately 50% larger than last week’s expiration.
In addition to Bitcoin, approximately 190,000 Ethereum options are about to expire. These contracts have a Put-Call ratio of 0.71, a maximum critical point of $1,600, and a face value of $290 million. What is significant about Ethereum contracts is its put/call ratio of 0.71, which indicates that more call options are being sold as ETH remains under bearish pressure.
Bitcoin Options Expiration Day
The maximum pain point for the current batch of Bitcoin options is $27,000, exactly the same as last week. It is also slightly above current spot prices. The maximum pain price is the level with the most open contracts. It is also the level where most losses occur when contracts expire. The put/call ratio for current Bitcoin options is 1.23, which means there are more sellers of short contracts than long ones.
Greeks Live said Bitcoin remains the market leader, with weekly positions in BTC options rising almost 70% this week. Additionally, BTC short positions account for 60% of the total, which is “a relatively rare occurrence,” he said before adding, “ETH continues to languish.”
Referring to implied volatility, which is the volatility derived from expiring futures contracts, Greeks Live added the following:
“IVs on all major terms remain at record lows with no signs of recovery, and as liquidity continues to deteriorate lately, the biggest one appears to be getting closer.”
The “big one” may refer to a final exit that has also been predicted by crypto market analysts.
In June this year, around 150,000 BTC options contracts, worth approximately $4.5 billion, and 1.2 million ether contracts, valued at $2.3 billion, expired on the major options exchange. cryptocurrencies, Deribit.
Back then, the most valuable cryptocurrency traded flat remained in a narrow price range and only made a 1% gain, reaching $30,700. Now, investors are anxiously watching to see if that pattern merges again, as these options contracts approach expiration once again.
What’s Happening with Ethereum Contracts?
In addition to the BTC contracts, a batch of 190,000 Ethereum options will expire today. These have a maximum critical point of $1,600 and a face value of $290 million.
On the other hand, Ethereum contracts have a put/call ratio of 0.71, meaning there are more buying options than selling options as ETH remains bearish.
This week’s options expiration event is unlikely to shake up spot markets, which have lost $54 billion in the past seven days.
The total capitalization is currently $1.08 trillion, with very little movement in the last 24 hours. However, sentiment and direction remain bearish, so further losses could occur over the weekend.
By Leonardo Pérez
