29,000 Bitcoin (BTC) Options Set to Expire Today, Here What’s To Expect

The Bitcoin (BTC) price continued to show strength gaining 10% over the last week amid heightened market volatility. Earlier today, the BTC price rallied all the way past $68,000, however, has partially retraced since then and is currently trading at $67,195 with a market cap of $1.320 trillion.

Traders Observe the Bitcoin (BTC) Options Expiry

As the crypto market braces for a significant event, options data reveals impending expirations poised to shape market dynamics. A total of 29,000 BTC options are set to expire, accompanied by a Put Call Ratio of 0.86, signaling a mix of bearish and bullish sentiment. The max pain point is calculated at $60,000, reflecting a pivotal price level where the maximum number of options contracts expire worthless, with a staggering notional value of $2 billion.

Amidst this anticipation, market volatility has surged to its highest level in nearly a year. Bitcoin’s tumultuous journey saw it briefly surpass $69,000, establishing a new all-time high, only to endure a sharp 10%+ decline thereafter. Notably, all major-term implied volatilities (IVs) surged, with ultra-short-term IVs peaking at 100%, reports Greeks.Live.

The fervor surrounding the U.S. money-driven spot bull market has garnered global attention, with Bitcoin emerging as a recognized store of value with a promising future. Consequently, options trading has seen a surge in volume and positions. Options are increasingly favored for their versatility, offering protection for spot buyers and high-leverage opportunities for long and short positions.

On-chain data show that despite the current volatility, Bitcoin whales and sharks have continued to accumulate. According to on-chain data provider Santiment, despite the market turbulence following the post the all-time high volatility, sharks and whales remain active. However, there is a decline in overall non-zero $BTC wallets, largely attributed to small traders capitulating. This combination is generally considered bullish.

SEC Postpones Trading Options for BTC ETFs

On Thursday, March 7, the U.S. Securities and Exchange Commission (SEC) delayed its decision on BlackRock’s request to trade options on a spot Bitcoin ETF until April 24. Previously, the SEC solicited public input regarding whether Nasdaq would permit options trading on BlackRock’s spot Bitcoin ETF. In another development, BlackRock also filed an application with the SEC to purchase spot Bitcoin ETFs to its Global Allocation Fund.

Additionally, the SEC postponed decisions on Cboe Exchange, Inc. and Miax Pearl LLC spot Bitcoin ETF options. In its filing, the SEC said:

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change”.

Thursday’s filings revealed that the SEC has deferred its decision regarding whether to permit Cboe Exchange, Inc. and Miax Pearl LLC to list and trade options on spot Bitcoin ETFs.