On March 22, the cryptocurrency market anticipates a potential surge in volatility due to the expiration of a substantial number of Bitcoin options. This event follows a tumultuous week for Bitcoin, which dipped to $61,500 on March 20 but subsequently rallied slightly. As approximately 25,300 Bitcoin contracts are set to expire, experts watch closely how this may influence market dynamics.
Derivatives Expiry and Market Impact
Despite being lower than the previous week’s figures, today’s Bitcoin derivatives expiry, valued at $1.8 billion, is significant. The put-to-call ratio for these options stands at 0.57, indicating a heavier inclination towards long positions in the market. With Deribit reporting almost $1 billion in unsettled contracts at the $65,000 strike price, and other notable strike prices garnering high open interest, market participants are gauging the potential impacts on trading patterns.
Crypto derivatives analytics firm Greeks Live notes that the recent stability in Fed interest rates has buoyed the market, with Bitcoin recouping its recent losses and maintaining a balance in the power between long and short positions, which underscores a robust bullish sentiment in the underlying market.
Broader Crypto Market Trends
The market is also eyeing the expiry of around 253,000 Ethereum contracts with a value of $885 million, and a similar put/call ratio of 0.51. Ethereum’s open interest is highest at the $4,000 strike price, with significant interest at $3,000 as well. Meanwhile, the total crypto market valuation has diminished by 2.5%, with Bitcoin and Ethereum experiencing slight declines. Most altcoins are currently facing losses, except for Binance Coin (BNB) and XRP, which have posted minor gains.