$9.74 Billion in Bitcoin Options Contracts Set to Settle

Today's Bitcoin options expiry event is the largest of the year, with approximately $9.74 billion worth of contracts expiring. The put/call ratio is 0.85, indicating a slight preference for long contracts. There is substantial open interest at strike prices of $65,000 and $70,000, with bulls dominating the market with open interest at higher prices like $75,000 and $100,000.

Bitcoin Options Expiration Event: $9.74 Billion Worth of Contracts Set to Settle

March 29th marks a significant event in the Bitcoin market, as approximately 135,250 Bitcoin (BTC) options contracts, with a notional value of a staggering $9.74 billion, are set to expire. This constitutes the largest options expiration event witnessed thus far in 2024, according to data from Deribit.

Put/Call Ratio Indicates Bullish Sentiment

The put/call ratio for today's sizable batch of options stands at 0.85, implying that there are marginally more long (i.e., bullish) contracts being sold than short (i.e., bearish) contracts. Notably, over a billion dollars in open interest (OI) is concentrated at the $65,000 and $70,000 strike prices, with the latter value being closer to current spot prices.

Bullish sentiment appears to prevail in the derivatives markets, with nearly a billion dollars in OI accumulating at significantly higher strike prices, including $75,000 and even $100,000. Open interest represents the number or value of contracts that remain outstanding and have not yet been settled.

Options Data Reveals Market Dynamics

Crypto derivatives tooling provider Greeks Live has reported on the total value of crypto options expiring today. With a substantial quarterly delivery and roughly $15 billion of crypto options pending settlement, Greeks Live noted that "market participants are ramping up to adjust their positions, with BTC calls remaining the driving force of this movement."

Additionally, the provider highlights that the $70,000 strike price has garnered significant interest, with the call option currently holding the second-largest options contract. Deribit reports its size to be marginally greater than the $65,000 strike price for calls.

Ethereum Options Contracts Also Expiring

In conjunction with the sizeable batch of Bitcoin contracts, approximately 1.58 million Ethereum options contracts are also set to expire on March 29th. These contracts carry a notional value of around $5.67 billion and exhibit a put/call ratio of 0.63, indicating a predominance of calls over puts expiring today.

Strike prices at $4,000 and $3,000 have attracted substantial OI, with the former boasting the larger notional value of approximately $700 million.

Market Impact Remains Uncertain

Historically, spot markets have not been significantly affected by derivatives expiration events. However, given the scale of today's event, some additional volatility is not out of the realm of possibility.

Total capitalization across the cryptocurrency market has experienced a 2% increase on the day, reaching $2.77 trillion during the Asian trading session on Friday morning.

Bitcoin has been oscillating around a resistance level of just over $70,000 for the majority of the past 24 hours, where it currently remains. Ethereum prices have been trading within the $3,500 range for the past 18 hours.