At $1.1B OI Markets Can Go Up?
Friday is the expiration date for Bitcoin options, and derivatives trading has increased in recent weeks as BTC ETF hype has grown. Crypto markets have also been steadily gaining, but could this end event add to the momentum?
About 29,000 Bitcoin options contracts are due to expire today. The tract is less than a third of last week's mammoth ending event, which was also the end of the month.
Bitcoin options expire
For today's expiring contracts, the proposed value is a little over $1.13 billion. Additionally, the maximum pain cost, or the level at which most losses occur at expiration, is around $37,000. This is a little lower than the current position BTC price, which is sitting a little above $38,000.
The put/put ratio for today's Bitcoin options is 0.58, meaning there are twice as many sellers of long (call) contracts as there are shorts.
Today's draw is the second largest expiration of the month through December 29, when nearly 150,000 contracts expire.
Read more: 9 Best AI Crypto Trading Bots to Maximize Your Profits
Greeks live market volatility fell this week, with BTC hitting triple resistance at $38,000.
Looking at the options data, we see that the Put/Call Ratio is low, which means that the main trades this week are focused on calls, with Maxpain points close to the strike price.
Greeks live noticed that the rally is getting hotter.
“An uptick is expected in January, focused on ETF approvals, as fewer and fewer investors increase in the short term.”
Ethereum Derivatives Outlook
In addition to Bitcoin options, nearly 230,000 Ethereum contracts are also set to expire today. These have a notional value of $470 million, a put/call ratio of 0.49 and a maximum pain point of $2,100.
In comparison, there was very little interest in ETH contracts, with all eyes focused on BTC and spot ETF approval.
Crypto markets rose 1% on the day, with total capitalization rising to $1.5 trillion by 2023.
Bitcoin gained the same amount, mostly in the last two hours, pushing the price to $38,132. However, in the last week, there have been protests three times.
Ethereum had a better day, gaining 2.8% to reach $2,093 at the time of writing. Most altcoins remain flat aside from Dogecoin, Avalanche and Polkadot, which are between 3.5% and 6%.
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