Analysis: Impact of $1.2B Bitcoin Options Expiry on Crypto Markets

As approximately 18,000 Bitcoin options with a notional value of $1.23 billion expire today, investors are closely monitoring the potential effects on cryptocurrency markets.

Compared to last week's massive $15 billion crypto options expiry, today's event is notably smaller. However, the market has shown weakness throughout the week, with total capitalization declining by 5%, resulting in a $150 billion outflow from the space.

Analysis of Bitcoin and Ethereum Options Expiry: Bullish Sentiment Despite Retracement

The put/call ratio of today's expiring Bitcoin options contracts stands at 0.64, indicating approximately one-third more call (long) contracts expiring than puts (shorts). The max pain point for today's batch is $68,000, slightly higher than current spot prices.

Open interest (OI) data reveals around $900 million at the $70,000 strike price, suggesting bullish sentiment towards a return to those levels. Additionally, there is $840 million in OI at a strike price of $100,000. Despite these indicators, Bitcoin appears to be retracing at present.

In addition to Bitcoin options, approximately 270,000 Ethereum contracts are set to expire, with a put/call ratio of 0.38, a max pain point of $3,400, and a notional value of $890 million.

Analysis of Bitcoin and Ethereum Options Expiry: Bullish Sentiment Despite Retracement

Crypto markets experienced an uptrend yesterday, with total market capitalization reaching $2.67 trillion before retracing. Since early March, markets have been consolidating around this level.

Bitcoin briefly reached $69,000 post-mid-week dip but retreated to $66,500 during the Friday morning Asian session, approximately 10% lower than its all-time high. Ethereum saw less significant movement, down by 1% to $3,275.

Altcoins displayed mixed performance, with notable gains for Toncoin (TON), Bitcoin Cash (BCH), and Ethereum Classic (ETC), alongside losses for Solana (SOL), Internet Computer (ICP), and Aptos (APT).