$1B Bitcoin Options Expire as BTC Price Stays Above $60K

Coinspeaker
$1 Billion in Bitcoin Options Set to Expire as BTC Price Stays Above $60,000

It’s been a challenging week for Bitcoin

BTC
$61,151

24h volatility:
1.7%

Market cap:
$1.21 T

Vol. 24h:
$30.78 B

and cryptocurrency investors globally, as volatility escalates due to the ongoing Israel-Iran conflict that intensified earlier this week. As of October 4, a total of 17,500 Bitcoin options are set to expire, featuring a put-call ratio of 0.75, a notional value of $1.07 billion, and a max pain point at $63,000.

With the US elections looming in six weeks, Bitcoin is expected to experience further volatility amid the competitive race between Kamala Harris and Donald Trump. The popular platform Greeks.live has reported that the implied volatilities (IVs) for all major maturities are at average levels compared to the previous year. Furthermore, these IVs are anticipated to remain supported through the upcoming US elections. The following two weeks could present a favorable opportunity for strategic positioning ahead of the fourth quarter.

Renowned crypto analyst Ali Martinez noted a significant rise in Bitcoin’s Taker Buy/Sell Ratio on the OKX exchange. According to Martinez, this surge indicates an increase in aggressive buying, potentially signaling upward momentum for Bitcoin in the near term.

There was a spike in the #Bitcoin Taker Buy/Sell Ratio on @okx! This indicates a surge in aggressive buying — a sign of upward momentum ahead! pic.twitter.com/QgZ9qkhSls

— Ali (@ali_charts) October 4, 2024

With Bitcoin experiencing more than a 6% decline on the weekly chart, investors are holding back, waiting for definitive signals to emerge for the next price movement. Quinn Thompson, the chief investment officer at Lekker Capital, suggested that investors seize the moment by purchasing BTC during dips.

He emphasized that the current price of around $61,000 is a clear opportunity, while also noting that the “macro backdrop” of BTC price movements has shifted significantly compared to prior declines.

BTC Price Likely to Rise as Demand Stays Strong

On-chain analytics platform Cryptoquant recently reported strong prospects for a short-term increase in BTC prices, potentially alleviating recent selling pressure.

Behind the scenes, demand appears robust, as evidenced by the widely-monitored Coinbase premium metric. This metric measures the price difference between the BTC/USD pair on Coinbase, the leading U.S. exchange, and the BTC/USDT equivalent on Binance.

CryptoQuant contributor Yonsei_dent explained that the moving averages of the premium’s size closely correlate with specific Bitcoin price trends. He elaborated:

“We analyzed the Coinbase Premium Index on a 1-hour time frame to observe short-term momentum, utilizing the 24-hour (daily) and 168-hour (weekly) moving averages for added context. Historically, when the daily moving average forms a golden cross by crossing above the weekly moving average with strong momentum, we observed significant price movements shortly thereafter.”