Bitcoin is seeing partial recovery to $68,000, with a record $4.5 billion in options expiring today. Ethereum also has a substantial options expiry worth $1.01 billion, or 403,426 contracts.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
After facing some selling pressure to $65,500 earlier this week, Bitcoin price is seeing partial recovery to $68,000 today ahead of the Friday options expiry. A total of $4.5 billion worth of Bitcoin options will be expiring today as per the data from the derivatives platform Deribit.
As per the details, a total of 62,657 Bitcoin options contracts will expire today, October 25, with a maximum pain point of $64,000 and a put-call ratio of 0.66.
Photo: Deribit
With BTC price BTC $84 727 24h volatility: 0.1% Market cap: $1.68 T Vol. 24h: $17.98 B staying above its maximum pain point, options expiring at this stage could lead to losses for the option holders. Also, the put-call ratio is a key sentiment indicator. A ratio below 1 usually reflects bullish sentiment, as more investors anticipate market gains. Conversely, a ratio above 1 tends to indicate bearish sentiment, suggesting concerns about a potential market downturn.
The interesting thing to see is that the volume of Bitcoin options expiry has surged to $4.5 billion this week. In the previous weeks this month, the options expiry volume was at an average of $1.5 billion.
Analysts at BloFin Academy note a significant shift in implied volatility (IV) as the US elections approach. They wrote:
“The change in implied volatility first reflects the election’s impact on the expected volatility of the crypto market. Whether it is BTC or ETH options, the implied volatility level of options expiring on November 8 has increased significantly and exceeded that of far-month options”.
They attribute the shift in implied volatility (IV) to investors’ hedging and speculative needs. Analysts also note a particularly sharp rise in BTC’s “election day option”, highlighting Bitcoin’s sensitivity to macro events. For now, though, most investors are staying on the sidelines, suggesting that October’s volatility may remain limited.
Along with Bitcoin, a total of 403,426 Ethereum options contracts worth $1.01 billion will expire today with a max pain point of $2,600 and a put-call ratio of 0.97. This shows that there’s a tough fight currently between the ETH ETH $1 587 24h volatility: 0.9% Market cap: $191.50 B Vol. 24h: $9.57 B bulls and bears.
Photo: Deribit
The Ethereum price movement has been testing investors’ patience for a while with spot Ethereum ETFs also not seeing a good pick up, unlike their Bitcoin counterparts. The Ethereum price has been trading around $2,515 levels at press time with no clear indication of the next directional move.
Probably, Donald Trump‘s presidency can trigger an altcoin market rally thereby pushing to more than $3,000 levels.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
