The cryptocurrency industry is closely monitoring the expiration date of $640 million worth of Bitcoin options.
The leading cryptocurrency, Bitcoin, is poised to undergo a transition because large notional value options contracts are due to expire.
The aftermath from this big expiration might have an impact on the price and volatility of the leading digital currency, which traders and investors are closely monitoring.
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Examining the choices in detail According to information released by Greeks.live, almost 24,000 Bitcoin options are about to expire. The $640 million notional value of these options is fixed. Interestingly, the put-call ratio for these options is 1.23, meaning that there are somewhat more put options than call options.
The price at which these options would result in the greatest possible financial loss for option holders—referred to as the “max pain point”—is fixed at $27,000. Weekly positions in Bitcoin options have increased by a significant 70% in volume this week, with put positions accounting for 60% of the total.
$640 million worth of Bitcoin (BTC) options are about to expire.,$640 million worth of Bitcoin (BTC) options are about to expire.
cSuch a skewed preference for put options is not often seen. Bitcoin is still the market leader, but options on Ethereum (ETH), its closest challenger, are also about to expire.
The price of bitcoin is staying stable. The price of Bitcoin is still comparatively steady despite the impending options expiry. With a 24-hour range of $26,570 to $26,911, the price has experienced a little change. It is now trading at $26,785.
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Considering the size of the expiring options, this steadiness is remarkable. With a 24-hour trading volume of over $10.53 billion, the market capitalization of Bitcoin is a healthy $522.65 billion. The coin’s recent extraordinary stability might be an indication of investor confidence or maybe of a wait-and-see attitude.
$640 million worth of Bitcoin (BTC) options are about to expire.,$640 million worth of Bitcoin (BTC) options are about to expire.,$640 million worth of Bitcoin (BTC) options are about to expire.