Bitcoin (BTC) and Ethereum (ETH) took center stage today as billions of dollars’ worth of options contracts expired in a historic quarterly delivery event totaling over $15 billion.
For those unfamiliar with this quarterly delivery event, it involves settling a large volume of crypto contracts, including options and futures contracts, at agreed-upon terms. This is the first quarterly delivery event of the year.
Interestingly, data indicates that the $15 billion notional value for this delivery is the highest ever recorded in the crypto market. This figure highlights the increasing institutional involvement and capital inflows in the crypto scene.
Colin Wu, a prominent Chinese blockchain reporter, highlighted this development in a recent post, citing information from GeeksLive, an options trading data analytics resource.
Bitcoin saw 135,000 options contracts expire during the quarterly delivery. The Put Call Ratio for these contracts was 0.85, indicating a predominantly bullish sentiment among traders. This ratio, which compares the number of put to call options, suggests optimism for Bitcoin’s price trajectory.
Additionally, Bitcoin’s max pain point was $51,000, which is the level where the maximum number of options contracts expired worthless. As BTC currently trades above $70,000, this event could lead to significant price movements as traders adjust their positions.
The combined notional value of Bitcoin options contracts reached a staggering $9.5 billion. This is due to the influx of capital from institutional investors.
Despite the significant quarterly delivery, Bitcoin surged during the week and reached $70,000, defying expectations.
While Bitcoin has stabilized above the $70,000 level, the recent quarterly delivery could usher in a period of intense volatility for the BTC market. The premier cryptocurrency is currently trading at $70,385, with 24-hour options Open Interest (OI) increasing 2% to $10.24 billion, according to Coinglass data.
As the market prepares for Bitcoin’s halving event next month, traders have been adjusting their strategies accordingly. The halving event, which reduces the reward for mining new blocks every four years, could further boost BTC’s price by reducing its inflation rate.
Meanwhile, Ethereum also saw significantly higher figures, with 1.58 million options contracts expiring. The Put Call Ratio for Ethereum was 0.63, indicating a similar bullish sentiment among options traders, albeit slightly lower than that of Bitcoin.
Ethereum’s max pain point was $2,600, and the crypto asset is currently up 35% from that price, trading at $3,533. The notional value of Ethereum options contracts amounted to $5.6 billion, representing substantial capital inflows into the ETH options market.
Disclaimer: This article provides informational content and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.