On Deribit, the largest crypto options exchange, options for Bitcoin and Ether worth over $14.6 billion are set to expire. This event indicates rising interest among traders for downside protection, especially for Bitcoin.
Overview of Bitcoin and Ether options
According to Deribit data, 56,452 call options and 48,961 put options for Bitcoin are scheduled for settlement this week, representing an open interest of $11.62 billion. Meanwhile, Ether's options include 393,534 call contracts and 291,128 put contracts, totaling an open interest of $3.03 billion.
Differences in positions for BTC and ETH options
Deribit's positioning reveals a disparity in sentiment amongst traders: most believe Bitcoin could drop below current levels. In contrast, Ether shows a more balanced outlook, as evidenced by the differences in open interest for call and put options. "The expiry points to persistent demand for downside protection for BTC, while ETH appears more neutral," analysts from the platform noted.
Impact of liquidations on the crypto market
In the last week, nearly $900 million in leveraged positions have been liquidated, resulting in Bitcoin and Ether both losing over 1.5% in value. Traders continue to observe the 'max pain' theory, which suggests that prices could gravitate towards levels where the most options expire worthless. Current max pain levels are set at $116,000 for Bitcoin and $3,800 for Ether.
The upcoming expiry of options on Bitcoin and Ether reflects market tensions and changing trader sentiments. Factors such as liquidation data and pertinent theories continue to influence price behaviors.
