Crypto Analyzer

Analysis: Impact of $1.1B Bitcoin Options Expiry on Crypto Markets

The crypto markets have been relatively stagnant recently, with minor fluctuations in prices. However, the expiry of around 18,280 Bitcoin options contracts worth $1.15 billion on May 10 could potentially inject some volatility into the market.

Bitcoin Options Expiry Overview

The put/call ratio for this week’s BTC options stands at 0.64, suggesting that more long contracts (calls) will expire than short contracts (puts). Open interest (OI) for long contracts is dominant, particularly at the $70,000 and $100,000 strike prices, totaling almost $700 million.

On the other hand, OI for put contracts is growing, especially at the $50,000 strike price. Overall, the open interest for Bitcoin call options significantly surpasses that of put options, indicating a bullish sentiment among traders.

Trading firms like QCP Capital and Paradigm have noted increased demand for upside call options, with buyers closing existing positions to move into higher-strike calls expiring in July and September.

Market Outlook

The total crypto market capitalization has reached $2.45 trillion, marking a 2.1% gain. However, the market has been trading sideways since mid-April, showing limited movement in either direction.

Bitcoin experienced a dip below $61,000 on May 9 but has since rebounded to around $63,000. The asset has been on a downward trend since reaching its all-time high in mid-March, currently down by 15%.

Ethereum saw a low of $2,953 before recovering to $3,032. Most altcoins are currently showing gains, with notable performances from Solana (SOL) and Toncoin (TON).

As the crypto markets await the outcome of the significant Bitcoin options expiry, traders and investors are keeping a close eye on potential market movements, especially in light of the bullish sentiment around Bitcoin call options and the overall market performance.

It will be interesting to see how the expiry of these contracts unfolds and whether it will have a noticeable impact on market dynamics in the coming days.