More than $3.7 billion in Bitcoin options expire, BTC trades above all-time high of $76,000

Today was a major event in the crypto derivatives markets, with a large number of Bitcoin and Ethereum options expiring at a time of significant price increases in the spot market. On November 8, a total of 49,000 Bitcoin options and 295,000 Ethereum options officially expired.

For Bitcoin, this expiration showed a put-to-call ratio of 0.72, indicating a slightly bearish sentiment among options traders who initially predicted a significant price correction. The notional value of the 49,000 bitcoin options that became worthless is $3.7 billion.

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Notably, last Friday, when the market was in a bearish phase, 28,000 Bitcoin options expired, worth about $2 billion. This expiration coincided with Bitcoin’s drop to $68,000. At the time, the options market was almost evenly split between bearish and bullish traders.

$3.7B in Bitcoin Options Expire, BTC Trades at All-Time High

Meanwhile, this latest event comes as Bitcoin is trading near all-time highs, with more options traders betting on a pullback. However, Bitcoin has maintained its uptrend, posting higher highs every day for the past four consecutive days.

At press time, Bitcoin is trading at $76,300, having previously reached an all-time high of $76,950 last night. This equates to a massive gain of about 20% for Bitcoin from Monday’s $66,000 price level.

This positive market sentiment is spreading to Ethereum, which is trading at $2,950, close to its intraday high.

Ethereum Expiration

Meanwhile, in Ethereum derivatives markets, 295,000 ETH options expired with the put-to-call ratio at 0.65, reflecting a neutral to slightly bullish bias. The total notional value of expired ETH options is approximately $860 million, while the maximum pain point is $2,500.

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Last week, 137,000 ETH options contracts with a notional value of $350 million also became void when the token’s price fell to $2,467. Since then, Ethereum has gained about 20%.

Biggest pain points and market outlook

Commenting on the latest expiry data for Bitcoin and Ethereum, Greeks.Live noted that the biggest pain point of the week was reached as many previously accumulated positions remained intact. Additionally, options expiring today account for 15% of total open interest.

They also noted that the conclusion of the U.S. election led to a sharp drop in short-term option implied volatility (IV). At the same time, implied volatility on longer-dated options has also generally fallen. With the market now more optimistic, according to Greeks.Live, the outlook for the fourth quarter of 2024 suggests the strong trend is likely to continue.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers should conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.