Bitcoin (BTC) and Ethereum (ETH) are in the spotlight today as billions worth of options contracts expire in a historic quarterly round totaling more than $15 billion.
For the uninitiated, this quarterly delivery event involves the settlement or settlement of a large number of crypto contracts, including options and futures contracts, under the terms of the agreement. This is the first quarterly delivery this year.
Interestingly, the data suggests that the $15 billion notional value of these deliveries is the highest quarterly delivery figure ever recorded in the crypto market. This figure reflects the growing institutional involvement in the crypto space and increased capital inflows.
Well-known Chinese blockchain reporter Colin Wu drew attention to this development in a recent article, citing information provided by options trading data analysis resource GeeksLive.
Bitcoin options record $9.5 billion in notional value
In the case of Bitcoin, 135,000 options contracts expire on a quarterly basis. The call-to-put ratio for these contracts is 0.85, indicating that traders are generally bullish. This ratio compares the number of buy and call options, hinting at optimism about Bitcoin’s price action.
Additionally, Bitcoin’s biggest pain point at $51,000 marks the number of options contracts with the highest value at expiration. With Bitcoin diverging from this price and now trading above $70,000, this event could trigger significant price action as traders adjust their holdings.
Remarkably, the notional value of Bitcoin options contracts totals a staggering $9.5 billion. This was due to a large inflow of funds from institutional interests.
Despite the significant quarterly delivery, Bitcoin surged this week, reaching $70,000 and exceeding expectations.
Bitcoin has stabilized above $70,000, but the latest quarterly delivery could trigger wild volatility in the Bitcoin market. Currently, the premier cryptocurrency is trading at $70,385, with 24-hour options open interest (OI) up 2% to $10.24 billion, according to data from Coinglass.
As the market gears up for Bitcoin’s halving event next month, traders have been adjusting their strategies accordingly. The halving event, which cuts the reward for mining new blocks in half every four years, could further support Bitcoin’s price by reducing its inflation rate.
Ethereum options have a notional value of $5.6 billion
Meanwhile, Ethereum’s numbers also rose significantly, with a total of 1.58 million options contracts expiring. Ethereum’s put-call ratio is 0.63, indicating a bullish bias among options traders, albeit slightly lower than Bitcoin’s.
Ethereum’s biggest pain point was $2,600, and the crypto asset is now up 35% from that price, currently trading at $3,533. The notional value of Ethereum options contracts totaled $5.6 billion, a figure that represents a significant influx of funds into the Ethereum options market.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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