Bitcoin Options Expiry: How Traders Are Pricing For Bitcoin Halving

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Bitcoin and Ethereum prices experienced a modest recovery but remain under pressure due to waning price momentum. Today, options worth approximately $2.5 billion for both cryptocurrencies are about to expire. The volatility leading up to Bitcoin‘s halving has intensified, with traders anticipating minimal upward movement amid external factors and large-scale selling by major investors.

Bitcoin and Ethereum Options Worth $2.5 Billion to Expire

The unpredictable nature of the cryptocurrency market is expected to continue before and after the Bitcoin halving, as indicated by market experts due to unfavorable circumstances such as this week’s inflated Consumer Price Index (CPI) data and a significant decrease in trading activity in the derivatives sector. In simpler terms, the price swings in the crypto market may persist due to negative investor sentiment caused by recent economic data and low volumes in the futures markets.

Greekslive reported that sell agreements have been the most prevalent trades this month, as expectations of Bitcoin’s halving event seem to have lost steam. Due to a recent decline in ETF investments and the absence of new market trends, the overall market sentiment has become more quiet and restrained. However, Greekslive suggests that selling over a medium-term period could be the wiser choice, while short-term selling may still hold some value due to the current market sentiment surrounding Bitcoin’s halving event.

Approximately 21,162 Bitcoin options with a total value of around $1.51 billion are approaching their expiration dates. The put options outnumber call options by a factor of 0.62. The price level causing the most potential loss for option holders is currently set at $69,000, suggesting that Bitcoin’s selling pressure may persist based on its current price. Implied volatility (IV), which reflects expected market swings, has noticeably decreased across various terms, increasing the likelihood of Bitcoin’s price dipping below $70,000 due to reduced volatility.

Bitcoin Options Expiry: How Traders Are Pricing For Bitcoin Halving

Approximately 227,785 Ethereum options with a total value of around $0.81 billion are approaching their expiration dates. The put-call ratio stands at 0.49. The price level causing the most significant potential loss ($3,425) is lower than the current ETH price ($3,535), suggesting that traders may still have chances to bet on a decrease in Ethereum’s price. Monitoring trading volumes closely will provide additional insights into potential trends in Ethereum’s price movement.

Bitcoin Options Expiry: How Traders Are Pricing For Bitcoin Halving

BTC Futures OI Stays Strong But Volatile

The price of Bitcoin is presently at $70,888, which represents a minor 0.50% increase over the past 24 hours. The lowest and highest points during this period were $69,571 and $71,256 respectively. Nevertheless, there’s been a significant decrease of approximately 22% in trading volumes within the last 24 hours, suggesting a waning interest from traders.

The total open interest for Bitcoin futures contracts on the cryptocurrency market has risen by 2% over the past 4 hours. However, there’s been some instability observed within the last hour. On the other hand, the open interest for CME Bitcoin futures saw a decrease of 1% during that same hour.

The price of ETH currently stands at $3,539, representing a 0.80% decrease within the past 24 hours. Its lowest and highest points during this period were $3,477 and $3,616, respectively. Additionally, the trading volume has dropped by more than 16%, suggesting that there’s less enthusiasm among traders.

In the past day, the total open interest for ETH Futures contracts decreased by 2%. However, within the last 4 hours, there was a 1% increase in open interest. The volatility in ETH Futures trading continues as options expiration approaches.

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2024-04-12 07:49