This week, 27,000 Bitcoin options are set to expire, representing a notional value of approximately $2.54 billion. This event is average compared to previous weeks.
Current State of Bitcoin Options Market
This week’s put/call ratio for Bitcoin options stands at 1, indicating a balance between short and long contract sellers. The max pain point is set at $90,000, where most losses will occur upon expiry.
Analysis of Open Interest
The highest open interest is noted at the $100,000 strike price, amounting to about $1.5 billion, indicating a bullish sentiment as derivatives speculators bet on rising prices. However, there is also a significant amount of open interest at the $80,000 and $65,000 strike prices, suggesting bears are keeping their short options open.
Crypto Market Outlook
Crypto markets appear to be ending the week positively, with total capitalization up slightly to reach $3.12 trillion after a week of sideways trading. Bitcoin leads the upward trend, reaching $97,340 during the week. Ethereum made minor gains with prices remaining low despite a 2% increase.
The expiry of Bitcoin options this week may impact the market; however, current open interest data and favorable market dynamics suggest potential for increased interest in cryptocurrencies.
