Bitcoin Options Expiry: What $2.9 Billion in Contracts Means for the Market

March 14 Bitcoin Options Expiry: Will Bearish Sentiment Drive Prices Lower?

Bitcoin options expiration this week is set to be a significant event, with approximately 35,000 Bitcoin options contracts expiring on Friday, March 14, totaling a notional value of roughly $2.9 billion. This represents a slight increase compared to last week’s expiry, but the real focus is on the massive $11 billion options expiration scheduled for March 28, coinciding with the end of the quarter.

Bitcoin Options Expiry: Key Data

This week’s Bitcoin options contracts have a put/call ratio of 0.73, indicating a slight bias towards call (long) contracts over puts (shorts). Notably, open interest (OI) remains high for Bitcoin options, with significant positions at the $120,000 strike price amounting to $1.4 billion. There is also $1.6 billion in OI at the $100,000 strike price and $1.3 billion at the $120,000 strike price. However, the bearish sentiment is still strong, with traders betting $850 million that Bitcoin will fall to $70,000.

Despite some positive CPI data, analysts remain “predominantly bearish” on the short-term market outlook, with some pointing to potential support levels and discussing a possible bottom for BTC near the $60,000 mark.

Broader Crypto Market Impact

Alongside Bitcoin’s options expiry, around 220,000 Ethereum contracts are also expiring, with a notional value of $416 million, bringing the total combined expiry to approximately $3.3 billion. However, despite this market movement, the broader crypto market has faced a 3.7% slump in total market capitalization, dropping to $2.76 trillion.

Bitcoin has dipped back to around $80,000, making a minor recovery to $82,000 during the Asian session. Analysts predict further downward pressure, with expectations of a drop to $70,000.

Ethereum continues to struggle in bear market territory, with prices failing to surpass $1,900 after dropping to $1,830.

Altcoin Performance

Altcoins have seen a mixed performance, with Cardano (ADA), Pi Network (PI), and Hedera (HBAR) experiencing larger losses, while XRP, Binance Coin (BNB), Tron (TRX), and Stellar (XLM) saw minor gains.

With significant options expirations ahead, the next few weeks could be pivotal for the Bitcoin and Ethereum markets as investors continue to navigate the prevailing uncertainty.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.