$4 Billion Bitcoin Option Contract To Expire On Friday, What This Means For BTC

Name	Symbol	Market	Market Cap ($)	Algorithm
Bitcoin	BTCUSD	Crypto	1,237,408,532,941	SHA-256d

Name

Symbol

Market

Market Cap ($)

Algorithm

Bitcoin

BTCUSD

Crypto

1,237,408,532,941

SHA-256d

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-679.99	-1.07%	63,059.04	63,058.93	63,062.14

Price Change

Price Change %

Current Price

Bid Price

Offer

-679.99

-1.07%

63,059.04

63,058.93

63,062.14

High Price	Low Price	Open Price	Prev. Close	52 Week Range
63,900.00	62,445.06	63,748.82	63,739.03	24,750.00 - 73,835.57

High Price

Low Price

Open Price

Prev. Close

52 Week Range

63,900.00

62,445.06

63,748.82

63,739.03

24,750.00 - 73,835.57

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	19:30:48	0.000336	63,059.04	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

19:30:48

0.000336

63,059.04

USD

Price x Volume	Volume	Base Symbol	Related Pairs
337,148,587.37	5,351.31	BTC	BTCEUR	BTCGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

337,148,587.37

5,351.31

$4 Billion Bitcoin Option Contract To Expire On Friday, What This Means For BTC

30/03/2023 7:45pm

NEWSBTC

Regardless of the market’s condition, Bitcoin (BTC) options contracts worth roughly $4 billion will expire by Friday. According to past option contracts expiration, this huge amount could impact the Bitcoin market significantly over the weekend. Similar to cryptocurrency futures contracts, options are financial derivatives that allow traders to buy or sell an asset at a pre-established price on a future date. Related Reading: Dormant Bitcoin Now 16% Higher Than BTC In Exchange Reserves $4 Billion Bitcoin Option Contract To Expire According to data from Amberdata, the quarterly option contracts on the biggest crypto options exchange, Deribit is set to expire by Friday. These contracts include call options (buy) of 81,052 worth $2.24 billion and 60,261 put options (sell) worth $1.73 billion. A put option allows an investor to sell assets at an agreed price on or before a particular date. In contrast, a call option is a contract that allows traders to buy assets at an agreed price on or before a given date. On the Deribit exchange, an option contract is parallel to just one BTC. Deribit is one of the leading crypto-based derivative exchanges in the market. It offers futures, options, and perpetual swaps for Bitcoin and Ethereum. Having the highest volume and open interest among other options exchanges, Deribit accounts for over 60% of the global crypto options activity. Out of its double-digit owned option activity, the exchange will liquidate its quarterly options by 08:00 UTC on Friday. What This Means For BTC BTC price has fallen sharply below $28,000 after its quick spike to above $29,000 earlier today. Over the past 24 hours, more than $20 billion have been removed from its market cap following its sharp spike. BTC is currently down by 1.4% at the time of writing, with a trading price of $27,876 and a market cap of $538 billion. According to Deribit, the last major Bitcoin options expiry happened in late December when roughly 135,000 contracts expired. Though this volume is relatively lower than that set to expire tomorrow. It resulted in a slight fall for BTC given it was already at the bottom due to the FTX crash and the Binance FUD (fear, uncertainty, and doubt). However, since BTC has been in an upward rally since the beginning of the year, especially over the past weeks, there could be a notable movement from the asset after the BTC options for tomorrow get liquidated. Commenting on tomorrow’s options expiry, trading desk QCP Capital shared with its followers: Tomorrow’s large quarter-end option expiry is unlikely to provide the fireworks that other march quarter-ends have done in recent years. The speed of the recent spot move and lack of traders’ conviction have left the open interest map spread rather thinly across strikes. We are positioning ourselves short vol into tomorrow’s expiry, expecting sellers to come in ahead of the big expiry roll tomorrow, and before buyers step in again next week. Featured image from Unsplash, Chart from TradingView

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