Bitcoin Options Expiry and Crypto Market Outlook
Options Expiry Event
Around 16,500 Bitcoin options contracts will expire on February 21, with a notional value of roughly $1.6 billion.
This week’s expiry event is smaller than last week’s and one of the smallest of the year, which means there will be virtually no impact on spot markets, which have been range-bound for most of the week.
Options Expiry Details
This week’s tranche of Bitcoin options contracts has a put/call ratio of 0.75, meaning that there are slightly more call (long) contracts expiring than puts (shorts).
Moreover, open interest (OI), or the value or number of BTC options contracts yet to expire, remains highest at the $120,000 strike price, which is $1.8 billion, according to Deribit.
There is also around $1.2 billion in OI at the $110,000 strike price, as derivatives traders continue to speculate that BTC prices will rise in the longer term.
Market Sentiment
According to Greeks Live, sentiment is “cautiously bearish,” with low volatility frustrating traders.
Deribit concurred in its weekly Insights report, stating, “Strong directional sentiment in derivatives markets has waned in response to the largely sideways moves in spot [markets] over the last two weeks.”
Crypto Market Outlook
Markets have shown minor gains towards the end of the week, with total capitalization reaching $3.35 trillion.
However, zooming out, they still remain at the lower bounds of a three-month sideways trading channel.
Bitcoin hit an intraday and two-week high of $98,750 during early trading in Asia on Friday morning.
However, it faced resistance there, as it has done twice before, and pulled back slightly at the time of writing.
Ethereum has been a little choppier over the past 24 hours, spiking to $2,767 before pulling back to $2,744 at the time of writing.
The altcoins were generally in the green this Friday morning, with larger gains for Solana, Sui, Avalanche, and Litecoin as ETF hope grows.
Conclusion
In conclusion, this week’s Bitcoin options expiry event is expected to have little impact on spot markets, which have been range-bound for most of the week. Market sentiment remains cautiously bearish, with low volatility frustrating traders. The crypto market outlook remains uncertain, with total capitalization at the lower bounds of a three-month sideways trading channel.
FAQs
Q: What is the notional value of this week’s Bitcoin options expiry?
A: The notional value is around $1.6 billion.
Q: What is the put/call ratio for this week’s options expiry?
A: The put/call ratio is 0.75, meaning that there are slightly more call (long) contracts expiring than puts (shorts).
Q: What is the open interest (OI) at the $120,000 strike price?
A: The OI is $1.8 billion.
Q: What is the OI at the $110,000 strike price?
A: The OI is around $1.2 billion.
Q: What is the current market sentiment?
A: Market sentiment is “cautiously bearish,” with low volatility frustrating traders.
Q: What is the total capitalization of the crypto market?
A: The total capitalization is $3.35 trillion.
Q: What is the current price of Bitcoin and Ethereum?
A: The current price of Bitcoin is around $98,750, and the current price of Ethereum is around $2,744.
