Bitcoin Prepares for Huge $3.8 Billion Options Expiry Amid Dominating Call Options

By: Isha Das

Summary

Approximately $3.8 billion in notional value, or 104,000 BTC, is set to expire on the last Friday of November, as per reports from derivative trading platform Deribit. The put/call ratio standing at 0.77 reaffirms a bullish sentiment, as substantiated by the prevailing call open interest, which includes roughly 58,000 Bitcoin in contrast to the 45,000 Bitcoin put options.

The data also refers to the significant parameter in the options market, the 'max pain price,' positioned at $32,000, currently lower than Bitcoin's market rate. This reference implies potential pressure on Bitcoin's price as the date of expiration approaches. Moreover, the high open interest in strike prices below the present market indicates that either these call options are in-the-money or the price was foreseen to hover around these levels.

This development has resulted in crypto enthusiasts and traders gearing up for more topside demand, particularly exploring the March 2024 expiry call options. The tension and interest surrounding this hefty options expiry will likely shape the Bitcoin market outcomes in the upcoming weeks.