A big Bitcoin options expiration event awaits this Friday.
Friday is Bitcoin Options Expiration Day, and today is a big month-end and year-end event. With billions of BTC derivatives expiring today, crypto markets may have one last move before the end of the year.
More than 178,000 Bitcoin options contracts in 2018 They are set to expire on Dec. 29, Deribit said. This is one of the biggest groups of the year minus last week's timeout events.
Bitcoin options expire
Today's massive Bitcoin derivatives contracts are worth $7.6 billion on options market leader Deribit. However, there are additional periods on smaller options exchanges such as CME and OKX.
The put/call ratio for the largest chunk of Derbi is 0.67, meaning that more than 50% of the call (long) contracts expire more than the put (short) contract. While the maximum pain point is $43,000, there is plenty of interest in the 24,600 calls at the $50,000 strike price.
Grix Live commented on the biggest annual shipping date, with a total of $11 billion, up from last year's end-of-year total of $9.8 billion.
“The market always goes to low volatility at the end of each year, but thanks to the ETFs expected next January, the current overall IV level is not too low.”
The bears need a low of $41,900 to break even, while the bulls will be happy to get above $44,000 on December 29.
Read more: 9 Best AI Crypto Trading Bots to Maximize Your Profits
The outlet added that crypto options and the derivatives market in general have matured this year.
He added that many institutional investors are entering the market with broad strategies and products.
Ethereum contracts expire
In addition to the large number of Bitcoin options expiring today, 1.49 million Ethereum contacts will expire.
The notional value of these options is $3.47 billion, and the call ratio is 0.51. There is a high pain point of $1,900 for Ethereum derivatives.
Spot markets retreated in Asian Friday morning trading, with total capitalization down 1.9%.
Bitcoin fell 1.3 percent to $42,634 in the fall, but remained range-bound at the time of writing.
Meanwhile, Ethereum has shed 1.7% from its 2023 high on December 28 to trade at $2,349.
Market volatility usually drops around the New Year period but may pick up again in anticipation of early January ETF approvals.
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