All articles tagged with #options expiry
Options expiry significantly influences Bitcoin and Ether prices by increasing volatility and market activity, driven by large derivative contracts nearing expiration. Traders use tools like put-call ratios and max pain theory to gauge sentiment and potential price movements, with strategies such as hedging and diversification recommended to manage risks during these periods.
Options traders are focusing on upcoming US jobs data and Fed rate decisions, with expectations of limited immediate volatility despite significant events like the Fed meeting and options expiry, as market participants await employment figures for clues on future rate cuts and market direction.
Bitcoin's recent pullback from its near $100,000 high is attributed to reduced U.S. Treasury term premiums and upcoming options expirations, according to Standard Chartered's Geoffrey Kendrick. Despite the correction, which could see Bitcoin testing support levels around $88,700, institutional interest remains strong, with significant BTC inflows into ETFs and acquisitions by MicroStrategy. Kendrick maintains a year-end target of $125,000 for Bitcoin, viewing the current dip as a necessary correction in a broader bull market.
$4.7 billion in Bitcoin and Ethereum options are set to expire, potentially increasing market volatility. Bitcoin and Ethereum have seen recent price gains, with Ethereum benefiting from a new spot ETF approval. Technical analysis suggests possible short-term declines for both cryptocurrencies, with Bitcoin potentially dropping to $67,000 and Ethereum to $3,500. The market shows a bullish sentiment for Bitcoin with a put/call ratio of 0.61, while Ethereum's ratio of 0.84 indicates a more balanced outlook.
Bitcoin hovers around $40,000 with options worth $3.75 billion set to expire on Friday, while Swiss crypto bank Sygnum closes a $40 million funding round to expand into new markets. Tesla's Q4 2023 earnings report reveals no change in its bitcoin holdings, remaining at over 9,720 BTC. The ether-bitcoin ratio has reversed half of its early January rally, reflecting bearish sentiment in the ether options market, although some analysts remain optimistic about ether's performance in the coming months.
Despite a recent dip in price, bitcoin could see a 10-20% increase in the next 30 days, potentially reaching $33,000 to $36,000 by August, according to Markus Thielen, head of research for crypto service provider Matrixport. Thielen noted that bitcoin has followed a pattern this year of rising about $10,000 before falling $5,000. As the market approaches Friday’s expiry of bitcoin options contracts, dealers will buy the cryptocurrency in the spot and futures markets, which could lead to an exaggerated price rally or a potential decline. Meanwhile, the SEC has taken a strong anti-crypto stance, but the recent spot bitcoin ETF filings by BlackRock and other asset managers could put pressure on regulators to approve the vehicle.
Bitcoin's price rally towards $30,300 triggered $125 million in liquidations of leveraged short futures contracts, with some analysts pointing to the potential inflow of institutional investors if BlackRock's ETF application gets regulatory approval. ARK Invest CEO Cathie Wood is bullish on Bitcoin's $1 million target, citing its ability to outperform in a deflationary environment. The negative regulatory pressure on Bitcoin eased after Binance struck a temporary agreement with the SEC to avoid a potential asset freeze. Bears concentrated their bets on Bitcoin trading below $27,000, but were caught by surprise as Bitcoin gained 10% in two days. Bulls are in a good position to capture a $250 million profit in the weekly BTC options expiry.