BTC Price Prognosis: Analyzing the Impact of 23,000 Bitcoin Options Expiring Today
23,000 Bitcoin options with a notional value of $1.4 billion are on the verge of expiring today amidst the bearish extension of the broad market. According to data, 334,248 Ether contracts with a notional value of $1 billion could also expire following the disappointing performance of the Hong Kong ETFs. The Bitcoin (BTC) price makes [...]
- 23,000 Bitcoin options with a notional value of $1.4 billion are on the verge of expiring today amidst the bearish extension of the broad market.
- According to data, 334,248 Ether contracts with a notional value of $1 billion could also expire following the disappointing performance of the Hong Kong ETFs.
The Bitcoin (BTC) price makes a marginal bullish reversal of 1.8% in the last 24 hours after plunging below the $60k price zone to reach $58k. On top of that, its monthly and year-to-date performance remains positive with respective returns of 36% and 33%.
Interestingly, the next move of the digital asset remains an open question with Greeks.Live reporting that 23,000 BTC options are on the brink of expiry.
According to the report, the options represent a notional value of $1.4 billion with its accompanying Put Call Ratio reportedly around 0.49 in addition to a Maxpain point of $61,000. Similarly, 334,248 Ether contracts with a notional value of $1 billion are set to expire today. These contracts have a put-to-call ratio of 0.37 and a maximum pain point of $3,000. For newbies, Maxpain refers to the price at which the asset would cause financial loss to the majority of the holders.
May 3 Options Data. 23,000 BTC options are about to expire with a Put Call Ratio of 0.49, a Maxpain point of $61,000, and a notional value of $1.4 billion. 330,000 ETH options are due to expire with a Put Call Ratio of 0.36, a Maxpain point of $3,000, and a notional value of $1 billion. The crypto market continued to fall this week, with BTC hitting the $60,000 mark, a new low since March.
May 3 Options Data
23,000 BTC options are about to expire with a Put Call Ratio of 0.49, a Maxpain point of $61,000 and a notional value of $1.4 billion.
330,000 ETH options are due to expire with a Put Call Ratio of 0.36, Maxpain point of $3,000 and notional value of $1… pic.twitter.com/mEA4PV98C3— Greeks.live (@GreeksLive) May 3, 2024
Bitcoin Struggles as Hong Kong ETFs Disappoint
The historical impact on the spot crypto market has always been short-term price volatility. Compounding the woes of the broad market and the bearish state of Bitcoin is the failure of the Hong Kong ETFs to add any substantial volume.
According to a Crypto News Flash report, the Hong Kong Bitcoin and Ethereum spot ETFs only processed $12.7 million in trading volume on their first day. The reason is reportedly linked to the concentration of interest of institutional investors solely on the US market. To Singapore-based crypto trading firm QCP Capital, this outcome is “terribly disappointing”.
The US spot Bitcoin ETFs, on the other hand, are severely breeding from consecutive outflows with $563.7m withdrawn on May 1. As stated by Greeks.Live, these situations have weakened market confidence and affected the Bitcoin price.
The Hong Kong ETF listing failed to bring much incremental volume, the US BTC ETF continued to flow out, the weakness of the market led to weakening market confidence, the IV of all major terms likewise continued to decline, the current IV level is the average water mark of the winter bull market, with some support, and the current buying is good choice. The current point of sustained sideways trading is unlikely, no rebound is bound to be a downward relay, the giant whale on the lack of confidence in the market, Block trading is worth strengthening attention.
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