19000 BTC Options to Expire Ahead Of Key US Non-Farm Payrolls Data

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19000 BTC Options Expiry Amid Bitcoin Price Drop

A massive 19,000 Bitcoin options are set to expire before the release of US Nonfarm Payrolls (NFP) data today. The BTC price is showing some volatility, taking a dive to $91,380 levels earlier today before recovering back above $94,000. A drop in Bitcoin funding rate and exchange volume hints at volatility in the short-term. Additionally, a massive 141,000 ETH options will also expire today.

19000 BTC Options Expiry Amid Bitcoin Price Drop

A total of 19,000 Bitcoin options expired this week with a notional value of $1.81 billion. The BTC options expiry has a put-call ratio of 0.65, a maximum pain point of $97,000, hinting that the bullish bias continues despite the price decline, according to data from Deribit exchange.

Figure 1: Bitcoin Options Expiry Data

[Insert image: Bitcoin Options Expiry Data]

The expiration occurred against the backdrop of a sharp pullback in the broader market, driven by weakness in U.S. equities and unfavorable macroeconomic conditions. Bitcoin price briefly dipped below $91,000, marking its lowest level in nearly a month. This decline comes alongside a sharp surge in short-term implied volatility (IV) for BTC options, indicating market panic and uncertainty.

Short-Term Prediction After BTC Options Expiry

Along with BTC options data, short-term indicators flash concerns, showing weakness for the world’s largest crypto asset class. A key metric, Hot Capital – representing capital revived over the past seven days – has plummeted 66.7%, dropping from its December 12 peak of $96.2 billion to $32.0 billion.

Figure 2: Bitcoin Realized Capital

[Insert image: Bitcoin Realized Capital]

Similarly, the 30-day average of Bitcoin exchange volume has now dropped to the 365-day average, showing a sharp drop in capital flows since the all-time high of $108K in December. The 7-day moving average of the mean funding rate, along with rates from the top three perpetual markets, remains below the neutral threshold of 0.01%.

Conclusion

The expiration of 19,000 BTC options and 141,000 ETH options amidst a volatile market landscape may pose significant risks for investors. As we move closer to the release of US Nonfarm Payrolls (NFP) data, market participants must assess the impact of these expiring options on the overall market sentiment. Will the market continue to trend upwards or will the expiration of these massive options expose underlying weakness? Only time will tell.

FAQs

Q: What is the significance of the expiring Bitcoin options?
A: The expiring options may impact market sentiment and prices, potentially leading to increased volatility.

Q: What is the current state of the market?
A: The market is experiencing a pullback, driven by weakness in U.S. equities and unfavorable macroeconomic conditions.

Q: What is the current state of Bitcoin’s funding rate?
A: The 7-day moving average of the mean funding rate is below the neutral threshold of 0.01%.

Q: What is the outlook for the market after the expiration of the options?
A: The market’s trend will depend on various factors, including the release of US Nonfarm Payrolls (NFP) data and the impact of the expiring options.