What investors should know
Nearly $1 billion worth of Bitcoin options contracts expire this Friday. Additionally, markets have recovered from their post-ETF declines, but could the issuance expiration event push prices higher over the weekend?
Around 22,000 Bitcoin options contracts on February 2. This week-end event is much less than last week's huge month-ender, but it is still worth almost a billion dollars of contracts.
Bitcoin options expire
The notional price for Bitcoin options contracts expiring this Friday is $960 million, Greeks Live reported. The call/call ratio is 0.66, which means that more calls or long contracts are being sold than puts or short contracts.
The maximum pain point or maximum loss value is $42,000. However, there is a lot of open interest at the $50,000 strike price, with 14,191 call contracts at that level. They have a notional value of $610 million, according to Deribit.
There is a lot of OI at $45,000, with 12,307 call contracts at that price.
The crypto market has been relatively flat this week, according to Greeks Live, which says relative and implied volatility is “predominantly trending lower.”
“Bitcoin spot ETFs are starting to bring more capital into the crypto market as the gray market slows down. The next big buzz will remain a big tone this year, speculation on the bitcoin halving.”
Read More: How to Trade Bitcoin Futures and Options Like a Pro
Crypto market and Ethereum option update
In addition to expiring Bitcoin options, 230,000 Ethereum contracts will expire this Friday. These have an estimated value of $530 million and a call ratio of 0.33, which means that sellers of the long contracts are three times larger.
The maximum pain point for ETH options is $2,300, which is the current spot market price.
Crypto markets have gained 2.3% in the last 24 hours, with total capitalization reaching $1.73 trillion. However, spot markets remain in a sideways channel that has formed over the past two months.
Bitcoin prices gained 2.6% to reclaim the $43,000 price level during Friday morning's Asian trading session. The asset has not received $44,000 from the ETF since its inception date, so options expiration is unlikely to have much of an impact.
ETH prices rose 2% when the asset reached $2,300, but it was trading sideways last week.
Disclaimer
Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This newsletter aims to provide accurate and up-to-date information. However, readers are advised to independently verify facts and consult with experts before making any decisions based on this content. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
