Crypto Analyzer

$700M in Bitcoin Options Expire: Weekend Market Analysis

The crypto market has been abuzz with the recent expiration of around 15,100 Bitcoin options contracts, representing a notional value of $700 million. Although this week’s expiration is smaller than the previous week’s, it could still have a significant impact on spot market momentum.

With a put/call ratio of 0.82, indicating slightly more long contracts being sold compared to short contracts, there is a notable amount of open interest at the $50,000 strike price, with 15,447 call contracts at that level worth $714 million. Furthermore, there are 11,600 call contracts at the $60,000 strike price, suggesting growing bullish sentiment among derivatives traders.

In addition to Bitcoin options, Ethereum contracts with a notional value of $473 million are also set to expire. There is $450 million in open interest at the $2,400 strike price, a level that was reached on spot markets on February 8.

The expiration of these contracts coincides with a 2.5% gain in the crypto market, bringing the total market capitalization to $1.83 trillion. Bitcoin led the pack with a 3.3% gain, reaching over $46,000 during the Friday morning Asian trading session, although it encountered resistance and fell back to $45,969 at the time of writing. Ethereum prices remained steady at $2,444 during the same session.

Altcoins showed a mixed performance, with Cardano (ADA), Litecoin (LTC), and Immutable (IMX) making gains, while TRON (TRX) and Chainlink (LINK) were in the red.

The market’s slew of options expirations and the dynamics of the open interest in Bitcoin and Ethereum contracts suggest that traders are preparing for potential price movements. As the crypto market continues to capture the interest of investors and traders alike, it remains to be seen how these expiration events will impact the market’s trajectory in the coming days.