Bitcoin trades over $69K in biggest quarterly options expiration in history
Bitcoin (BTC) prices remained above the $69,000 mark on March 29, despite the market experiencing the largest quarterly Bitcoin futures expiration event in history.
Hao Yang, global head of derivatives trading at BayBit Exchange, told Cointelegraph:
“We have experienced the largest option expiration period in history for bybit and derbit. People may roll or unwind their hedge positions during the expiration period, and the unwinding action may have little effect on price action in the short term.”
More than $15.1 billion worth of cryptocurrency futures on Deribit expires on March 29 at 8:00 am UTC.
Of the $15.1 billion, $9.53 billion represents the notional value of Bitcoin options expiring at a call ratio of 0.84, with a “high pain” price potential of $51,000.
While the timing of the option's expiration can lead to high volatility, the peak pain price point still doesn't provide an accurate reflection of bitcoin's long-term price potential tied to its fundamental values, Yang explained.
“Just like a fancy gaming PC case doesn't directly affect the performance of the hardware inside, high pain is an indicator that gives some insight but ultimately has some impact on Bitcoin's actual price movement.”
RELATED: Extreme Pain $51k? More than $9.4B worth of Bitcoin options will expire on Friday
Despite the delay, the price impact was minimal, said Andrey Stoychev, project manager of Nexo's prime brokerage division. He told Cointelegraph.
“With calls in the money now and calls merging to zero, the delta hedge is largely complete, and we expect a lower price impact from expiration. However, the key question remains: Will the call surplus be recontracted into new contracts, and if so, what strikes and maturities will be preferred?” ?”
Bitcoin's pre-halving correction may be over.
Bitcoin fell 0.7% in the 24 hours to trade at $69,924 at 10:35 am UTC, according to CoinMarketCap data. The world's first cryptocurrency increased by more than 11.9% on the monthly chart.
Bitcoin's historical pre-halving has recurred with previous historical iterations. In a March 26 video analysis by Rect Capital, the current pre-half correction could be over if the price of Bitcoin can turn its old all-time high of $69,000 into support.
“Bitcoin is now coming off its previous all-time high, positioning itself for the end of the pre-half correction.”
Related: Bitcoin Half: Latest News and Full Coverage by Cointelegraph
