Markets Brace for Impact as $1B Bitcoin Options Expire Today

On Friday, Oct. 4, approximately 17,400 Bitcoin options contracts are set to expire, collectively valued at about $1 billion.

The options expiration today is significantly smaller than last week’s substantial month-end and quarter-end event, thus it is unlikely to have a meaningful effect on the spot markets, which have been softening this week.

Bitcoin Options Expiration

This week’s batch of Bitcoin options contracts shows a put/call ratio of 0.75, indicating a slight edge for the long (call) contracts over the short (put) contracts.

Moreover, the open interest (OI) — the worth of options contracts that remain unexpired — remains notable at the $70,000 strike price, standing at $841 million.

The OI at the $80,000 and $90,000 strike prices has diminished. Yet, according to Deribit, a substantial $968 million remains at the $100,000 strike price.

Greeks Live, a provider of crypto derivatives, shared their market outlook earlier this week, mentioning that “crypto markets are entering a shakeout” and added:

“With quarterly delivery complete, major maturity implied volatilities are lower, and downward pressure continues this week. Historically, October is often more favorable, making this a good moment to consider buying.”

Bitcoin Investment Essentials, A Sneak Peek at This Week’s Biggest Events (9/30-10/6)

This week’s pivotal macro data includes Friday’s unemployment rate and non-farm payrolls, and currently, the volatile A-share market contrasts notably with the U.S. stock market…

— Greeks.live (@GreeksLive) October 1, 2024

In addition to the Bitcoin options expiring today, there are approximately 119,000 Ethereum options set to expire, valued at $282 million, featuring a put/call ratio of 0.68. This brings the total expiry event value to around $1.3 billion.

Crypto Market Overview

The crypto markets fell by another 2% today, with total market capitalization decreasing to $2.21 trillion, marking the lowest point since mid-September.

Furthermore, markets have witnessed a decline of $200 billion since the onset of this month, quashing expectations of an “Uptober” following “Slumptember.”

Bitcoin recorded an intraday low of $59,950 during late trading on Thursday but managed to rise back to $61,000 in the Friday morning session in Asia. However, that recovery appeared fragile, with the asset pulling back again as of the time of writing.

Ethereum’s price movements mirrored Bitcoin, dropping close to $2,300 before a slight rebound to $2,370. Over the past week, ETH has experienced a 10% downturn amid a resurgence of uncertainty.

Most altcoins remain in the red this Friday morning, following a similar trend throughout much of the week.