Bitcoin markets have already started moving, but will today’s big BTC options expiry send them higher? Nearly $1 billion worth of crypto derivatives are expiring, and perhaps markets will be spurred into action.
On October 20, around 23,000 Bitcoin options contracts with a nominal value of around $640 million will expire. Furthermore, this Friday’s expiration is roughly the same as last week, with the difference that BTC prices are already in motion.
Bitcoin options expiry date
The put/call ratio for today’s Bitcoin options is 0.82, meaning there are slightly more sellers of long contracts than short contracts.
Additionally, the maximum pain point for today’s Bitcoin options is $28,000, about a thousand dollars lower than current BTC spot prices.
The maximum pain price is the level with the most open contracts and the level at which the most losses occur when the contracts expire.
Bitcoin is still the market leader, Greeks Live commented on today’s proceedings. It added that “the put share of BTC options is significantly lower and market sentiment has improved significantly.” The Greeks added:
“In the last two days in particular, the options market has seen significant gains as giant whales began adding to their forward call positions.”
Open Bitcoin interest. Source: X/@GreeksLive
It was also noted that the implied volatility of all major terms is still at historically low levels. This situation has been going on for a quarter of a year, “and after such a long bear market, a big market could be just around the corner,” it said.
Ethereum contract expiration
Additionally, around 210,000 Ethereum contracts with a notional value of $320 million expire today. Furthermore, these derivatives have a maximum pain point of $1,600 and a put/call ratio of 0.84.
Trading in Ethereum contracts has been lackluster in recent months as spot markets have been in the doldrums.
However, the same cannot be said for Bitcoin, which broke $29,000 during the Asian trading session on Friday morning.
At the time of writing, BTC is currently trading up 3.2% at $29,228. Momentum is building as the asset has gained an impressive 9% in the last seven days.
Ethereum managed just a 2% gain, rising to $1,584, still deep in bear territory. Additionally, some of the altcoins are also seeing impressive gains, with XRP gaining 6% and Solana (SOL) gaining 11%.
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