Crypto markets steady as $1.1B in Bitcoin options expire today

Today, August 23, approximately 18,400 Bitcoin (CRYPTO:BTC) options contracts, valued at around $1.1 billion, are set to expire.

Despite the significant amount, this week’s expiry is smaller than last week’s, suggesting a limited effect on spot markets.

A much larger options expiry event, valued at $3.5 billion, is anticipated next week, which could have a more pronounced impact on the market.

The current batch of Bitcoin options has a put/call ratio of 0.83, indicating a slight bias towards long positions (calls) over shorts (puts).

The max pain point, where the most losses would occur, is at $60,000, closely aligning with Bitcoin’s current spot price.

Open interest remains high at strike prices above $70,000, with a notable $967 million in contracts at the $100,000 strike price, reflecting bullish expectations for a significant Bitcoin price increase.

According to Deribit, a leading crypto derivatives platform, the market’s calmness is evident as historical volatility continues to decrease.

This trend is echoed by Greeks Live, a crypto derivatives provider, which noted that recent macroeconomic events have not significantly impacted the market.

The options market’s expectations for future volatility are gradually diminishing, indicating a period of stability.

In addition to Bitcoin, around 140,000 Ethereum (CRYPTO:ETH) options are also set to expire today, with a notional value of $370 million.

The put/call ratio for Ethereum options stands at 0.93, and the max pain point is at $2,625.

Despite the options expiry, the overall crypto market has remained relatively flat.

Total crypto market capitalisation has hovered around $2.24 trillion, with Bitcoin maintaining a price above $60,000.

Ethereum saw a modest gain of 1.2%, trading at $2,634 during the Asian trading session.

With today’s Jackson Hole speech by Jerome Powell looming, any unexpected announcements could still influence market movements.

However, in the absence of surprises, the impact of this week’s Bitcoin options expiry is expected to be minimal, keeping the markets steady for now.

At the time of reporting, the Bitcoin price was $60,899.18.