Cryptocurrency options expiry: Impact on market volatility
Options expiry: A catalyst for market movement
As $3 billion worth of Bitcoin and Ethereum options approach their expiry date, the cryptocurrency market is bracing for a potential major move. With such a large contract size at play, investors are closely monitoring how this event will influence market volatility.
Bitcoin and Ethereum options: Key figures and implications
According to Deribit data, there are approximately $2.34 billion worth of Bitcoin options set to expire today, with a maximum loss potential of $66,000. The put to call ratio stands at 0.58, indicating a higher preference for buying options over selling them. On the other hand, Ethereum has 183,756 contracts expiring soon, with a notional value of $577.2 million and a maximum loss of $3,300.
Market outlook post-options expiry
Historically, options contract expirations have led to sharp but temporary price movements in the cryptocurrency market. Following the expiry, the market tends to stabilize over time. Traders are advised to remain vigilant, analyze technical indicators, and monitor market sentiment to effectively navigate potential volatility.
