Bitcoin and Ethereum Options Expiry Impact on Cryptocurrency Markets
$2.5 Billion Options Contracts Expiring: Market Effects
Today marks the expiration of around $2.5 billion worth of Bitcoin (BTC) and Ethereum (ETH) options following Monday’s cryptocurrency market crash. The maturity of these contracts could potentially bring about changes in market conditions, with investors closely monitoring for any shifts in sentiment.
Bitcoin Options Expiry Details
Deribit reports that $1.94 billion worth of Bitcoin options are set to expire, with a maximum loss of $60,000 on these contracts. The total number of contracts involved is 31,615, slightly lower than the previous week. The put to call ratio stands at 0.71, indicating an overall bullish sentiment despite recent volatility.
Ethereum Options Expiry Overview
Alongside Bitcoin, Ethereum options worth $552.13 million are expiring, with 206,626 contracts in play. This represents an increase from the previous week. The maximum spread on these options is $2,950, with a put to call ratio of 0.95.
Market Recovery Post-Crash
Despite the significant price drop in Bitcoin and Ethereum following Monday’s market crash, the cryptocurrency market has shown signs of recovery. Bitcoin has reclaimed the $60,000 mark, currently trading at $61,494, a nearly 10% increase in 24 hours. Ethereum has surged by almost 12%, briefly touching $2,700 and currently trading at $2,671.
Historically, options expiration tends to lead to temporary but swift price movements in the market. Analysts advise traders to remain vigilant, analyze technical indicators, and monitor market sentiment to effectively manage potential volatility.
