As a seasoned crypto investor with over a decade of experience navigating the volatile waters of digital assets, I find myself cautiously optimistic about this week’s massive Bitcoin and Ethereum options expiry. The sheer notional value of these contracts – $5.8 billion for BTC and $1.9 billion for ETH – is staggering, making it one of the largest events since the end of March.
Approximately 89,000 Bitcoin option agreements will be settled this coming Friday, September 27th. The total worth of these derivative contracts is roughly estimated at about $5.8 billion.
As a crypto investor, I find today’s options expiry particularly noteworthy given that we are wrapping up both the month and the third quarter. This significant event might influence the spot markets, which have shown an upward trend throughout this week.
Crypto Options Expiry
This week’s large number of Bitcoin options is heavily skewed towards call options, or long positions, compared to put options, or short positions. The point where the maximum losses are likely to occur, known as the max pain point, is estimated to be approximately $59,000. This price is around $6,000 lower than the current market value.
At the $70,000 strike price, a significant amount of open interest, representing approximately $872 million, remains unexpired. Furthermore, there’s an extra $910 million in open interest contracts at the $90,000 strike price, and more than a billion dollars in open interest is found at the $100,000 strike price, as reported by Deribit.
According to Greeks Live, a provider of tools for cryptocurrency options, the value of cryptocurrencies has significantly increased over the past three weeks. This surge is largely due to the Federal Reserve’s decision to lower interest rates by 0.5%. This move has greatly enhanced market confidence. Furthermore, they anticipate a positive fourth quarter for cryptocurrencies, pointing out several factors that are likely to drive growth in the crypto market.
As we approach the final stretch of Q3, historical trends suggest that Q4 tends to be quite favorable. With the upcoming U.S. election and two interest rate reductions, it seems there will be ample chances for active trading.
The Greeks mentioned that each quarterly delivery comes with a significant number of changing roles and reduced margins, while all significant term-implied volatilities remain at low points.
As we conclude our quarterly deliveries, there’s still some pressure pointing downwards. The next fortnight offers us an excellent chance for planning and executing our operations during the upcoming fourth quarter.
27th September marks the expiration date for 27,000 BTC options and 718,000 ETH options. The Put-Call Ratio for BTC is 0.64, meaning there are more call (buy) options than put (sell) options. The Maxpain point for BTC stands at $59,000, and the total value of these options is approximately $5.8 billion. Similarly, for ETH, the Put-Call Ratio is 0.47, with more put options than call options, and the Maxpain point is at $2,500, giving a notional value of about $1.9 billion.
— Greeks.live (@GreeksLive) September 27, 2024
Ethereum Options Expiry
Approximately 718,000 Ethereum (ETH) options are set to expire soon, with a combined value of approximately $1.9 billion. These financial instruments, known as derivatives, have a put/call ratio of 0.47 and a critical point, or “max pain point,” of $2,500. This event, when considering all cryptocurrency options expiries, totals $7.7 billion, marking the largest such occurrence since late March.
Today, the cumulative value of cryptocurrencies has risen by 1.4%, reaching an impressive total market cap of $2.37 trillion – a figure not seen since early August.
Bitcoin reached an approximately two-month peak of $65,700 but later dipped to around $65,300 during the early Asian trading hours on Friday. Ethereum was unable to surpass resistance at $2,650 and experienced a slight decrease as of this writing.
Read More
- PENDLE PREDICTION. PENDLE cryptocurrency
- Skull and Bones Players Report Nerve-Wracking Bug With Reaper of the Lost
- SOLO PREDICTION. SOLO cryptocurrency
- W PREDICTION. W cryptocurrency
- POPCAT PREDICTION. POPCAT cryptocurrency
- Aphrodite Fanart: Hades’ Most Beautiful Muse Unveiled
- Clash Royale: The Perils of Firecrackers and Cringe Decks
- Understanding Shinjiro: The Persona 3 Character Debate
- Smite 2: Overcoming the Fear of Your First Match in the MOBA Universe
- Understanding the Constant Rain in Pacific Drive: A Reddit Discussion
2024-09-27 10:07