1 Billion Dollars In Bitcoin Options Are Expiring! Get Ready For The Storm

Today, the crypto market could experience increased volatility with the expiration of $1 billion worth of Bitcoin options. About 17,400 Bitcoin option contracts will expire, representing a notional value of approximately $1 billion. Although this expiration is less significant than last week’s, it could still influence market movements.

Expiration of $1 billion Bitcoin options!

The expiration of these $1 billion Bitcoin options could shake up the crypto market. Indeed, the put/call ratio for this series of options is 0.75, which means there are slightly more long contracts (calls) than short contracts (puts) expiring. The open interest (OI), or the value of still-open option contracts, remains high at the strike price of $70,000, at $841 million. However, the OI at the strike prices of $80,000 and $90,000 has decreased, while $968 million remains at the $100,000 strike price.

According to a crypto derivatives provider, markets are entering a “shakeout” phase after the quarterly delivery. The implied volatility (IV) of the main maturities is at lower levels, and there is still a lot of downward pressure for Bitcoin this week. Historically, October is generally better for the ecosystem, which could represent a buying opportunity.

Impact on the BTC market

Bitcoin hit an intraday low of $59,950 before recovering to $61,000 during the Asian trading session this Friday morning. The expiration of these Bitcoin options could lead to increased volatility, causing significant fluctuations in the BTC price. Investors may see sharp upward or downward movements, depending on the positions taken by option holders.

The expiration of these Bitcoin options may not have a significant impact on spot markets, but it remains an event to watch closely. Investors should remain vigilant to potential volatility and buying opportunities that may arise in the coming days.