Potential Impact of 640 Million Dollars Bitcoin Options Expiry on the Cryptocurrency Markets

Crypto News- As we approach October 13th, we’re keeping a close eye on a substantial expiration event involving approximately 24,000 Bitcoin options contracts, collectively valued at around $640 million. Notably, this particular options expiry, falling on a Friday the 13th, is significantly larger, about 50% larger in fact, compared to the previous week.

Potential Impact of 640 Million Dollars Bitcoin Options Expiry on the Cryptocurrency Markets

Analysis of the Bitcoin Options Expiry:

The key level to watch for this batch of Bitcoin options is the maximum pain point, which is pegged at $27,000, echoing last week’s level. It’s interesting to note that this level is slightly above the current spot prices. The maximum pain point is essentially the price level where we see the highest concentration of open contracts and is typically where most losses occur when these contracts reach their expiration.

Greeks Live has provided insights into the market dynamics, highlighting that Bitcoin maintains its leadership position. Weekly positions in BTC options have surged by nearly 70% in the past week. Furthermore, BTC Put positions constitute 60% of the total, a somewhat unusual occurrence. Conversely, Ethereum (ETH) options appear to be struggling.

In reference to implied volatility, which is derived from future expiring contracts, Greeks Live pointed out that implied volatilities across all major terms are currently at record lows, showing no signs of an imminent rebound. This situation, coupled with recent liquidity deterioration, has led to concerns that a significant market event might be on the horizon.

The term “big one” could allude to a significant market shakeup, a scenario that has also been forecasted by various crypto market analysts.

Insight into Ethereum Contracts:

In addition to Bitcoin contracts, a substantial batch of 190,000 Ethereum options is slated to expire on the same day. These Ethereum contracts have a maximum pain point of $1,600 and a collective notional value of $290 million.

The total cryptocurrency market capitalization currently stands at approximately $1.08 trillion, with minimal movement observed in the last 24 hours. However, prevailing market sentiment and direction continue to be bearish, suggesting the possibility of further losses over the upcoming weekend.