As November begins, today marks another critical expiry day in the crypto realm, bringing significant volatility and excitement. Approximately 28,000 Bitcoin options contracts are set to expire, valued at around $2 billion.
This expiry is considerably less than last week’s month-end event, which saw more than double the value of Bitcoin options expiring. As a result, its impact on spot markets is likely to be limited.
Bitcoin Options Expiry
This week’s Bitcoin options feature a put/call ratio of 0.92, indicating a relatively even distribution of long (calls) and short (puts) contracts. The max pain point for today’s options is around $69,000, aligning closely with current market prices.
Additionally, open interest (OI) has risen to $1.3 billion at the $80,000 strike price, suggesting increased market activity. Joshua Lim, head of derivatives at Arbelos Markets, pointed out that the CME Bitcoin options have seen some of their highest trading volumes ahead of the U.S. elections, with significant purchases at the $85,000 strike price reflecting a bullish outlook from institutional investors.
“This may signal a growing liquidity in the crypto derivatives market as the sector continues to mature,” Lim remarked.
Alongside Bitcoin options, around 137,000 Ethereum options contracts are also expiring today, with a put/call ratio of 0.68 and a max pain point of $2,550, contributing to a total notional value of $350 million. Together, today’s crypto options expiry amounts to approximately $2.3 billion.
Crypto Market Outlook
The overall cryptocurrency market has experienced a sharp decline, with about $100 billion lost from total market capitalization over the last 24 hours, dropping it to $2.43 trillion—a 5.5% decrease.
Bitcoin had approached its all-time high on October 30 but was unable to surpass it, leading to a 4% correction that saw prices dip below $69,000 during the Friday morning trading session in Asia. Ethereum reached a peak of $2,700 but has since fallen back to around $2,500, struggling to maintain upward momentum.
Most altcoins are showing a similar lack of enthusiasm, remaining significantly lower as they fail to capitalize on Bitcoin’s previous surges.
Conclusion
As we observe today’s options expiry, the mood in the crypto markets appears cautious. While the expiration of Bitcoin options could influence price shifts, the current market conditions indicate that any recovery may take time. Investors and traders will be watching closely to see how these developments play out, especially with increasing institutional interest in the crypto space.
