On Friday, 19,300 Bitcoin option contracts with a notional value of $1.8 billion are set to expire. This event could influence the cryptocurrency market dynamics.
Bitcoin Options Expiry
The current batch of Bitcoin options has a put/call ratio of 0.65, indicating more call contracts than put contracts. Open interest is highest at the $120,000 strike price, with $1.48 billion in OI according to Deribit. Significant OI is also noted at the $100,000 and $110,000 levels.
Crypto Market Correction
Total cryptocurrency market capitalization has fallen 4.4% to $3.37 trillion. Bitcoin dropped to an intraday low of $91,250 but recovered to $93,000 in Asian trading. Despite this recovery, Bitcoin is down 9% since it reached six figures on January 7.
Conclusion and Forecasts
The market faces uncertainty with continued volatility. Participants focus on Bitcoin holding critical levels to avoid deeper declines. Further developments are expected amid US inflation fears.
The expiry of large Bitcoin option volumes may affect investor sentiment and market dynamics. Participants keep an eye on key support levels to assess further prospects.
