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Bitcoin Volatility Today: How Will Crypto Markets React When $3B BTC Options Expire
The end of another week has rolled around, bringing with it the impending expiration of approximately 27,300 Bitcoin options contracts. These contracts have a combined notional value of roughly $2.98 billion, which is significantly lower than last week’s massive $17 billion expiry. Despite this reduction in scale, market participants are still on high alert, waiting to see how crypto markets will react when these options expire.
As of writing, Bitcoin (BTC) has surged above $109,500, although it has since corrected to $109,500. Many traders and analysts have expressed frustration with the stagnant market conditions and elevated volatility levels, resulting in a strong bearish sentiment among derivatives speculators.
In its weekly market update, crypto derivatives provider Greeks Live noted that such sentiment is evident due to the lack of significant market movements over recent weeks. As a result, Bitcoin’s price has been oscillating within a narrow range for some time now, much like Ethereum’s (ETH) stagnant performance below $2,600.
Analysts are divided on what to expect from today’s expiry event. Some believe that the market is not ready for such a significant and unexpected move, citing the lack of any substantial price action over the past couple of months. However, others argue that the combined value of these options contracts could spark some excitement in the market.
Regardless of the outcome, it is essential to be prepared for potential price swings or even flash crashes. With nearly 27,300 contracts set to expire today, investors must stay vigilant and adjust their positions accordingly as needed.
It’s worth noting that the put/call ratio has reached an equilibrium at approximately 1:1, which suggests that there are roughly equal numbers of buy (call) and sell (put) orders being placed. This could lead to a potentially volatile day for traders, as market participants will be watching closely how these events unfold.
In conclusion, while last week’s options expiry had a profound impact on the overall crypto market sentiment, this week is expected to have less of an influence due to the much smaller size of the contracts.
Source: cryptopotato.com
