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$2.5B in Crypto Options Expire Today — Will Markets React?
As a week draws to a close, cryptocurrency markets have been focusing on an enormous event of expiry dates for options. With more than $2.5 billion of actual value scheduled to expire on the 21st of May in both Bitcoin as well as Ethereum contracts, the market is attentively watching for any signs of market movements. But recent trends suggest that the effect could be less modest than what some would have expected.
Bitcoin Options Expiry: What to Expect
This Friday, April 4, approximately 28,000 Bitcoin options expire in a collective nominal value of around $2.25 billion. Even with the massive quantity, the current market has been similar to the previous week, when trading in derivatives was low. In the end, the effect of the expiry on the spot price is likely to be minimal, especially in light of the current volatility.
This week’s put/call ratio is at 0.88, which indicates that bullish and bearish sentiment is quite evenly distributed among the holders of contracts. The highest point of pai,n which is where most options are worthless after expiration, has been set at $82,000. This is a price that the market appears to be hovering around.
In contrast, open interest (OI) is largely concentrated around the $70,000 strike,e which is where more than $1 billion worth of contracts anticipate a decline in BTC’s value. But, bets on bulls are solid, as is the substantial OI being found in the $100,000 strike.
According to the platform for derivatives analysis, Greeks Live, market sentiment is now “cautiously bullish” following U.S. President Donald Trump’s announcement about the pause of tariffs for 90 days, but doubt persists about whether the uptrend will last. Certain analysts have also pointed to an unusual increase in buying within the $75,000-$77k range right ahead of the announcement. These are raising the possibility of insider info that could influence trading.
Ethereum Options Join the Mix
Alongside the option expiration date for Bitcoin and 183,000 Ethereum contracts worth $283 million are due to expire tomorrow. The ratio of put and call for ETH has been set at 0.92 and the highest limit is $1,750. When combined with BTC contracts, the value of the crypto options today with an expiry date is approximately $2.5 billion.
Crypto Market Outlook: Mixed Signals
Although there is some hope, however, the crypto market overall has been a bit shaky in the form of a 3.6 percent decline over the last 24 hours, which brings the total market cap to $2.65 trillion.
Bitcoin briefly rose back $83,000 last Thursday, then fell to $79,000 after weaker-than-expected CPI numbers for the U.S. The cryptocurrency has since recouped a little by hovering near $80,000 in the morning on Asian markets.
In the process of zooming out, Bitcoin is going through a slow decline since the middle of January, shedding approximately 26% off its record-breaking high.
Ethereum is also in bearish territory. It has lost 4% during the previous day, to $1,540. The altcoins, however, showed an uneven performance and included Cardano (ADA), Avalanche (AVAX) as well as Hedera (HBAR), making small gains on the day.
Key Takeaways
- $2.25B of BTC and $283M of ETH options expire on the 21st of May.
- The highest point of pain in BTC’s history is around $82,000. OI is centered around $75K and $ 100 K.
- Positive sentiment in the market has remained, but it remains uncertain.
- CPI information and macroeconomic data are continuing to influence price actions.
- Ethereum remains behind, whereas altcoins are still mixed.
With all the moving parts that traders must be on their guard when the market is digesting today’s option expiry as well as the broader economic events. If we witness a significant break or a more swaying consolidation is yet to be determined, but like all crypto markets, it is possible to expect unexpected developments.
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