Newsletter32,000 Bitcoin Options Set to Expire Amid Strong BTC Recovery
Highlights
- The implied volatility dropped significantly from the start of the week but remains high from pre-crash levels.
- 206,000 ETH options are set to expire today with a put-call ratio of 0.96.
- Both Bitcoin and Ethereum gave a surprise surge by 7-10% ahead of the options expiry.
Amid a week of strong volatility in the crypto market, $2.5 billion worth of Bitcoin options and Ether options will be expiring today amid a tight fight between the bulls and the bears. Both the assets – BTC and ETH – have been showing major strength gaining 7% and 10% respectively.
Bitcoin Options Expiry
As per the data from Deribits, a total of 32,000 Bitcoin options contracts are set to expire today with a put call ratio of 0.71. The notional value of the expiry is $1.943 billion while the max pain point of $60,000.
The Yen rate hike last week induced severe volatility in the crypto market with the Bitcoin price dropping under $50,000 earlier on Monday. However, the Bank of Japan suggested a softer stand going ahead if the market instability escalates. This led to a strong recovery in the last four days, with BTC surging sharply by 20% currently trading at more than $61,000 levels.
Also, the implied volatility has decreased to a great extent but still remains higher than the pre-crash levels. The ongoing market volatility makes it challenging for IVs to decline rapidly over a short period.
The Grayscale Research report notes that if the US economy avoids recession and manages a “soft landing,” the token valuations can rebound with Bitcoin testing its all-time high levels by the end of the year. Besides, the report also noted that there is little tolerance for a deep economic recession and the Fed could pivot soon to rate cuts on the first sight of trouble.
Also Read: CBOE Resubmits Bitcoin ETF Options Trading Application, Q4 Approval Likely?
Ethereum Options Expiry
A total of 206,000 ETH options are set to expire today with a put-call ratio of 0.96, a notional value of $560 million, and a max pain point of $2,950. The put-call ratio close to 1 shows that it’s a tight fight between the bulls and the bears.
In the last 24 hours, the Ethereum price has witnessed a strong rebound jumping 10.70% and shooting at the way to $2,700. As per the technical charts, ETH can further extend a rally to $2,820.
#Ethereum forms a bull pennant on lower time frames, indicating a potential rise of over 4% towards $2,820! pic.twitter.com/EHp4XwBF3F
— Ali (@ali_charts) August 9, 2024
The Ethereum ETFs were showing major strength during the market collapse, however, have been seeing outflows as the market revived in the last two days.
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