Bitcoin Options: 37000 Contracts Expiring on August 2 Amid BTC Volatility
Highlights
- Bitcoin options data shows that the implied volatility has dropped significantly showing strong inaction.
- $2.5 billion in leveraged long positions liquidated at Bitcoin price slipped under $63,000 today.
- A new Bitcoin whale addressed scooped 4,600 BTC in recent price drop.
The Bitcoin (BTC) price has recently come under selling pressure soon after the US Fed meeting when the central bank decided to keep rates unchanged at 5.25%. The Bitcoin price has been now flirting around $64,000 with strong volatility in the last 24 hours. All eyes are on today’s Bitcoin options expiry.
Bitcoin Options Expiry
As per the data from Greeks.Live, more than 37,000 Bitcoin options are expiring later today, August 2, indicating major market movements. Today’s BTC options expiry has a put-call ratio of 0.58, a Maxpain point of $66,000, and a notional value of $2.4 billion.
The crypto market has been experiencing a downturn recently as the market has seen a decline with the launch of the spot Ethereum ETF and overall outflows. Despite the important events, all major term implied volatilities (IVs) have seen significant declines, with the Dvol index dropping to its lowest levels in 2024. This shows that the market has pretty low expectations in the aftermath of the ETF launch.
On the other hand, the US stocks have been underperforming recently showing that there’s no major momentum to support the market in August. Many market analysts believe that the actual movement will happen after the Fed rate cut in September. As a result, some of the altcoin whales have started buying the dips in anticipation of the rate cut.
Also Read: Grayscale Ethereum ETF Outflows Cross $2 Billion, More Pain Ahead?
BTC Liquidations Before Options Expiry
In the last 24 hours, Bitcoin has seen strong volatility while taking a dive under $62,000 before recovering back. As the BTC price tanked under $63,000 a total of $2.5 billion on long liquidations took place in the leveraged long positions. Popular crypto analyst Ali Martinez explains now if the BTC price managed to rally to $70,440 the bears will get rekt for $2.4 billion in short position liquidations.
A bunch of #Bitcoin bulls got rekt in this downswing. According to data from @coinglass_com, over $2.50 billion in leveraged long positions got liquidated as $BTC dipped below $63,000!
Now, bears are getting cocky. But nearly $2.40 billion in leveraged short positions will be… pic.twitter.com/QHULbk8vWy
— Ali (@ali_charts) August 1, 2024
On the other hand, the Bitcoin whales are once again getting into action buying the dips. As per the data by SpotonChain, a newly born whale with wallet address “bc1qh” has withdrawn 4,600 BTC, worth a staggering $291 million, from Bitfinex at ~$63,209.
Fresh whale “bc1qh” withdrew 4,600 $BTC ($291M) from #Bitfinex at ~$63,209 at the dip in the past 8 hours!
Recently, we also noticed 3 other whales (likely one entity) withdrawing 3,910 $BTC ($257M) from #Bitfinex since June 12, with the last accumulation only 3 days ago.
Is… https://t.co/N09fJsv6xq pic.twitter.com/j4Nm9jxHim
— Spot On Chain (@spotonchain) August 2, 2024
Also Read: Coinbase (COIN) Stock Recovers 3% With Strong Institutional Activity in Q2
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