Crypto Market Prepares for $9.4 Billion Options Expiry Post Bitcoin Halving
The crypto market is buzzing with anticipation as the first crypto market expiry after the fourth Bitcoin halving approaches. Traders are gearing up for a potentially volatile day as over $9.4 billion in crypto options are set to expire this Friday.
The overall sentiment in the market remains bullish, with investors holding Bitcoin price above $66,000. The Fear & Greed Index shows an increase in sentiment from neutral to greed, indicating a positive outlook among market participants. However, with the monthly expiry looming, traders are cautious and waiting for some headwinds to clear before making new moves.
A total of 94k Bitcoin options worth $6.3 billion in notional value are set to expire on Friday, with a put-call ratio of 0.68. The max pain point is $61,000, below the current price, suggesting that the market could see significant volatility and a potential pullback in price on the expiry day.
Additionally, 941k Ethereum options worth $3.1 billion are also set to expire, with a put-call ratio of 0.49. The max pain point for Ethereum is $3,100, with the current price trading above this level at $3,252.
Deribit has reported a surge in realised volatility as the crypto options expiry approaches, indicating increased market activity and potential price movements. On-chain analyst IT Tech has warned about potential liquidation due to high leverage, but also sees signs of demand that could lead to a recovery in BTC price for a massive rally.
In terms of price performance, Bitcoin remains volatile, trading near $66,500 with a 24-hour low and high of $65,864 and $67,148, respectively. Total Bitcoin futures open interest has increased by over 1% in the past 24 hours, with buying activity picking up in the last few hours. A new whale has accumulated 500 BTC worth $33 million, potentially setting the stage for a push towards $70,000.
However, external factors such as the release of U.S. PCE inflation data and the rise in the US 10-year Treasury yield could put pressure on Bitcoin price. With the market expiry approaching, traders are bracing themselves for a day of potential volatility and significant price movements.
