Will Markets Rise in $3 Billion Crypto Options Expiration Event?

Will today's big expiration event push Bitcoin's price higher or start a correction, with the asset touching an all-time high of over $69,000 this week?

About 29,000 Bitcoin options contracts worth around $2 billion will expire on March 8.

This week's expiration event is slightly smaller than last week's, but a massive event worth more than $6 billion will occur at the end of March.

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Bitcoin options expire

The put/call ratio for today's Bitcoin options expiration is 0.86, which means that sellers of long and short contracts are relatively evenly matched.

The maximum pain point, or the price at which the majority of the loss ends, is $60,000. It has a notional value of $1.9 billion plus open interest at $65,000 and $70,000, according to Deribit data.

Crypto derivatives tool provider GrixLive reported that market volatility reached its highest level in nearly a year this week. He added that all major terms are trending higher in implied volatility (IV), “In the short-term, IVs have reached 100% at one point.

Implied volatility is a measure used to predict the market's expectations regarding the future price movement of an option's underlying asset.

“The amount of options and positions have increased, and the advantages of options are very clear recently, the options reserved for the buyers of the positions and the high profit for the long and short buyers, all are trading tools with very high profit / loss ratios.”

March 8 Options Data 29,000 BTC options with a Put Call Ratio of 0.86, a maximum pain point of $60,000 and a $2 billion option worth $270,000 expires at a Put Call Ratio of 0.55, a maximum pain point of $2,950 and a notional price… pic.twitter. com/BR4LfAgn4s

— Greeks.live (@GreeksLive) March 8, 2024

In addition to Bitcoin contracts, there are approximately 270,000 Ethereum options expiring at a call/call rate of 0.55.

These are an ideal value of $1.05 billion and a maximum pain point of $2,950. Deribit data indicates that there is a lot of open interest at the $3,000 and $4,000 prices, the latter of which is more than $826 million.

Crypto market overview

Crypto market capitalization gained 2.2% on the day to reach $2.67 trillion. Following a daily increase of 1.8%, Bitcoin was closing at $67,000 at the time of writing.

Ethereum is doing better today with a 3.6% increase to push above $3,900 for the first time in over two years.

However, the two biggest movers on the day were Binance Coin (BNB), up 10% to $468, and Shiba Inu (SHIB), up 11% to close in the market's top ten.