As a seasoned financial analyst with extensive experience in the crypto market, I’ve witnessed numerous market fluctuations and options expiry events. Based on my analysis of the current situation, traders’ cautious approach can be attributed primarily to the significant crypto options expiry on Deribit.
In spite of various influential elements shaping the cryptocurrency market’s bullish trend, traders have adopted a cautious stance, focusing on observing developments. This shift is primarily driven by the upcoming options expiry event. The prices of Bitcoin and Ethereum are experiencing mild selling pressure as traders prepare for approximately $2 billion in crypto options set to expire on Deribit, the leading derivatives exchange.
As a researcher studying the crypto market, I’ve found that approximately $150 million worth of positions were liquidated in the last 24 hours based on Coingeasiness data. The largest single liquidation order took place on OKX, with an entity offloading ETH for USD to the tune of $4 million. Among the most liquidated cryptocurrencies over this period were BTC, ETH, XRP, SOL, WLD, PEPE, DOGE, WIF, and ORDI.
Over $1.8 Billion In Bitcoin and ETH Options Expiry
As an analyst, I’ve observed the global cryptocurrency market capitalization experience a steady retreat from $2.41 trillion to $2.35 trillion. Despite this pullback, investors remain optimistic, fueled by upcoming events such as the launch of a spot Ethereum ETF and the Bitcoin Conference. The Fear and Greed Index has undergone a dramatic transformation, moving from an extreme fear score of 25 to a greed score of 60 within a week, reflecting significant market volatility. Market participants have momentarily taken a step back due to crypto options expiry.
As a researcher studying the derivatives market, I’ve discovered that over 20,670 Bitcoin (BTC) options with a combined value of approximately $1.33 billion are scheduled to expire today on Deribit. The put-call ratio stands impressively high at 1.19, indicating a strong preference for putting or selling BTC at a specified price. This imbalance could be the reason why Bitcoin’s price dropped from around $65,000 to $63,000 as market participants may have chosen to exercise their put options, selling Bitcoin and realizing profits.
Bitcoins anticipated price swings have grown more pronounced this week as investor enthusiasm heightens, with the implied volatility continuing to climb. Implied volatility signifies the market’s prediction for potential price fluctuations.
As an analyst, I’ve discovered that approximately 143,391 Ethereum options with a total value of around half a billion dollars are approaching their expiration dates. The put-call ratio stands at 0.37, implying a slightly higher demand for call options than puts. The max pain price for Ethereum is currently set at $3,150, which is below the current market price of $3,444. This suggests that there may be more opportunities for traders to sell Ethereum. However, it’s important to note that an anticipated spot Ethereum ETF launch next week could potentially mitigate any potential selloff in the market.
SOL, XRP, and MATIC Expiry
Simultaneously, derivatives linked to Solana (SOL), XRP, and Polygon (MATIC) with a linear structure on Deribit are approaching their expiration dates. The settlement for these cryptocurrency options’ expiration will be processed in USDC.
Approximately 5,156 Solana option contracts with a total value of $8.5 million are set to expire today. The put-call ratio stands at 0.82, indicating a slightly bearish sentiment, while the max pain point is at a price of $145. Currently, Solana’s price hovers around $165, marking a 3% increase in the last day and an impressive 20% surge over the past week. The growing interest in Solana ETFs has contributed to this bullish trend.
Approximately 3,473 XRP option contracts, worth around $1.93 million, will expire today. The put-call ratio stands at 0.70, and the highest price for a single option contract is currently $0.47. Following a 40% surge in value over the past week, the XRP price has retreated to $0.55. Members of the community are eagerly anticipating the outcome of the ongoing legal dispute between Ripple and the SEC.
The impending expiration of MATIC options involves a put-call ratio of 0.76 and a maximum pain price of $0.51, currently lower than the market price of $0.516. Polygon has scheduled the MATIC to POL token migration for September 4.)
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2024-07-19 10:52