Bitcoin's $1.9 Billion Options Deadline Looms: What's Next for Volatile Cryptocurrency Prices?
The cryptocurrency market is bracing for a relatively minor event this Friday, April 10, as approximately 26,700 Bitcoin options contracts, valued at around $1.9 billion, are set to expire. This expiry is remarkably similar to the previous week's event and is expected to have a minimal impact on the spot market. Meanwhile, the total capitalization of the crypto market has been steadily increasing, with a substantial $90 billion added since Monday.
The current batch of expiring Bitcoin options contracts displays a put/call ratio of 0.71, indicating a slightly bullish sentiment, with more long positions than short ones. According to data from Coinglass, the max pain point is approximately $69,000, which is below the current spot price, suggesting that many of these contracts may expire worthless. The open interest, or the value of outstanding Bitcoin options contracts, remains highest at the $80,000 strike price on Deribit, with a notable $1.6 billion in bullish bets.
The total open interest for Bitcoin options across all exchanges has retreated to $34 billion following the conclusion of the Q1 expiry event. Deribit noted that the recent market rally was driven by a sense of relief, stating, "A fragile truce to parry grotesque rhetoric rallied markets." As a result, traders have been actively buying short-term call options and adjusting their positions to reflect the improved market sentiment.
Greeks Live observed that the rebound above $70,000 has alleviated fears of a sudden market crash, rather than signaling expectations of sustained price growth. In addition to the Bitcoin options expiring this week, around 151,500 Ethereum contracts, with a notional value of $332 million, are also set to expire. The max pain point for Ethereum is approximately $2,050, with a put/call ratio of 0.77. The total open interest for Ethereum options across all exchanges stands at around $6.6 billion, with CryptoQuant analyst "Darkfost" noting signs of recovery in Ether derivatives.
The combined notional value of crypto options expiries this week is approximately $2.2 billion, a relatively small event. As of Friday morning in Asia, the total crypto market capitalization had surpassed $2.5 trillion, with Bitcoin reclaiming the $72,000 level and posting an 8.4% gain over the past seven days. However, the asset remains rangebound, with significant resistance just above current price levels. Ethereum prices have also held on to this week's gains, trading at around $2,200, while most altcoins remain flat, stuck at bear market lows.