{"id":13991,"date":"2023-05-26T02:03:28","date_gmt":"2023-05-26T06:03:28","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/about-85000-bitcoin-options-contracts-set-to-expire-this-friday\/"},"modified":"2023-05-26T02:03:29","modified_gmt":"2023-05-26T06:03:29","slug":"about-85000-bitcoin-options-contracts-set-to-expire-this-friday","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=13991","title":{"rendered":"About 85,000 Bitcoin Options Contracts Set to Expire This Friday"},"content":{"rendered":"
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About 85,000 bitcoin options contracts, worth around $2.3 billion, are set to expire on major cryptocurrency futures and options exchange Deribit this Friday.<\/p>\n

According to Deribit data, around 700,000 Ethereum options, valued at over $1.2 billion, are also set to expire on May 26.\u00a0<\/p>\n

“This Friday a total value of USD 3.6 billion will expire, which equals approximately 26% of Deribit’s open interest,” the platform said in a recent tweet.\u00a0<\/p>\n

It detailed that the leading cryptocurrency, Bitcoin, has a Put Call Ratio of 0.38, indicating a higher number of positive bets.<\/p>\n

Bitcoin’s maximum pain point, the point or the strike price where the largest number of options open interest will expire worthlessly, is situated at around $27,000.\u00a0<\/p>\n

This level carries significant importance, as it could act as a critical support or resistance area that intensifies price fluctuations.\u00a0<\/p>\n

The current value of Bitcoin contracts reaching expiry stands at an impressive $2.2 billion when converted to dollars. This staggering figure highlights the significance of the upcoming contract expiry and the potential impact it may have on the marketplace.\u00a0<\/p>\n

Ethereum, the second-largest cryptocurrency, has a Put Call Ratio of 0.49, indicating a marginally higher proportion of bearish sentiment.\u00a0<\/p>\n

Roughly 700,000 Ethereum options contracts have an expiry date of May 26, with a notional value of just over $1.2 billion.\u00a0<\/p>\n

Traders are particularly monitoring the max pain price, which is estimated to be at $1,800 for Ethereum. This level could act as a focal point for market movements and potentially impact the short-term volatility of the cryptocurrency.\u00a0<\/p>\n

As Bitcoin and Ethereum approach contract expiry, market participants could expect potential turbulence in the short term.\u00a0<\/p>\n

The expiration of these contracts has the potential to create short-term price fluctuations that could reverberate throughout the entire cryptocurrency industry.<\/p>\n

“In the meantime, Implied Vol remains at rock bottom level, with DVOL trading at 50 for BTC and ETH and shorter-dated even lower but climbing slightly,” Deribit said in the tweet.\u00a0<\/p>\n

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“BTC and ETH levels are the same, which is historically rare. We saw a similar rock bottom IV situation in Jan this year, followed by a big spike afterwards.”<\/p>\n<\/blockquote>\n

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Crypto Assets Struggle Amid US Debt Ceiling Debate Drama<\/h2>\n

Cryptocurrencies have been struggling to gather pace as investors remain worried about the debt ceiling and the Federal Reserve’s next move.<\/p>\n

According to analysts, even if the US government raises the debt ceiling before the June 1 deadline, it could still negatively impact risk-on assets like stocks and cryptocurrencies because the issuance of new US Treasuries could reduce liquidity within the market.\u00a0<\/p>\n

Fixed-income assets like one-year instruments, which currently offer a 5.15% yield, are usually attractive investment options in times of economic uncertainty.\u00a0<\/p>\n

For instance, US money market fund assets hit a record $5.8 trillion this week as investors focused on short-term debt securities, according to a\u00a0report by Reuters.\u00a0<\/p>\n<\/p><\/div>\n