{"id":11840,"date":"2025-02-07T06:01:43","date_gmt":"2025-02-07T06:01:43","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=11840"},"modified":"2025-02-07T06:01:43","modified_gmt":"2025-02-07T06:01:43","slug":"how-will-markets-react-to-todays-2-5b-bitcoin-options-expiry","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=11840","title":{"rendered":"How Will Markets React to Today\u2019s $2.5B Bitcoin Options Expiry?"},"content":{"rendered":"
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Around 26,000 Bitcoin options contracts will expire on Friday, Feb. 7, and they have a notional value of roughly $2.5 billion.<\/p>\n

This week\u2019s expiry event is about a third of the size of last week\u2019s<\/a> month-ending mammoth one. Therefore, there is likely to be a minimal influence on spot markets, which have retreated this week.<\/p>\n

Bitcoin Options Expiry<\/h2>\n

This week\u2019s batch of Bitcoin options contracts has a put\/call ratio of 0.58, meaning that there are many more call (long) contracts expiring than puts (shorts). The max pain point, or price where most losses will be made, is $99,500.<\/p>\n

Moreover, open interest (OI), or the value or number of BTC options contracts yet to expire, is highest at the $120,000 strike price, which is $1.7 billion, according<\/a> to Deribit.<\/p>\n

There is also around $1.3 billion in OI at the $110,000 strike price, as derivatives traders continue to speculate that prices will rise from current levels in the longer term.<\/p>\n

Earlier this week, crypto derivatives provider Greeks Live said<\/a>, \u201cThe market is now very divided, with BTC being strongly supported by funding from both inside and outside the crypto.\u201d<\/p>\n

It added that altcoins, represented by ETH, \u201care losing money violently, the vast majority of cryptocurrency prices have shrunk significantly, and the altcoin season that market was expecting has not arrived.\u201d<\/p>\n

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\u201cBut we can see from the options data BTC and ETH skew have maintained a positive value. The giant whale also bought a large number of call options in the pullback, indicating that the market is still optimistic about the future as a whole,\u201d<\/p>\n<\/blockquote>\n

Skew refers to the difference in implied volatility (IV) between call and put options or across different strike prices and expirations.<\/p>\n

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7 Feb Options Data
\n26,000 BTC options expired with a Put Call Ratio of 0.58, a Maxpain point of $99,500 and a notional value of $2.54 billion.
\n203,000 ETH options expired with Put Call Ratio of 0.46, Maxpain point of $2,950 and notional value of $560 million.
\nMarket sentiment was\u2026 pic.twitter.com\/UbN9mtdrJ6<\/a><\/p>\n

\u2014 Greeks.live (@GreeksLive) February 7, 2025<\/a><\/p>\n<\/blockquote>\n