Major Bitcoin and Ethereum Options Expiry Could Fuel Continued Crypto Market Consolidation

Around 118,000 Bitcoin options contracts worth $3.2B are expiring on September 29. The max pain point is $26,500.
This Bitcoin options expiry is a big quarterly event, though Q3 is typically the least active trading period.
Implied volatility for Bitcoin has been in a downtrend, indicating continued market consolidation ahead.
Over 1 million Ethereum options contracts worth $1.8B are also expiring today. The max pain point is $1,650.
Crypto markets are seeing a rare day in the green, with Bitcoin topping $27k and Ethereum gaining on futures ETF hype.

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Relevant topic timeline:

8/23/2023

Ether-Bitcoin Ratio Uptick Fails to Inspire Bullish Positioning in ETH Options

Options data indicates a stronger bearish outlook for ether in the short and long terms, while traders remain bullish on bitcoin due to expectations of it being the first beneficiary of a positive macroeconomic environment.

8/24/2023

Bitcoin, Ether Trade Below 'Maximum Pain' Levels Ahead of $2.7B Options Settlement

The upcoming settlement of BTC and ETH options contracts could potentially push the prices of the cryptocurrencies closer to the max pain levels of $28,000 and $1,800, respectively, as sellers of call and put options try to make their counterparts suffer the most, according to Deribit, the world's leading crypto options exchange.

8/25/2023

$1.9 Billion Worth of Bitcoin Options to Expire Today

Deribit, the leading crypto options exchange, will settle $1.9 billion worth of Bitcoin options contracts and $893 million worth of Ether options contracts that are set to expire today.

9/14/2023

Zero-Day Options Trading Skyrockets as Retail and Institutions Flock to High-Risk, High-Reward Bets

Zero-day to expiry options, or "0DTEs," have become popular among retail and institutional traders, with activity in the market hitting record highs, accounting for a significant portion of average daily trading volume in options tied to the S&P 500; however, there are concerns about the potential risks and impact on stock-market stability that these options pose.

9/15/2023

Record $3.4 Trillion in Stock Options Expiring Friday Could Mean Volatility for Stocks and Bitcoin

Stock options worth $3.4 trillion are set to expire on Friday, potentially leading to increased volatility and price declines in both the S&P 500 and Bitcoin, with September historically being a negative month for these assets. There is also a possibility of a surprise interest rate hike by the Federal Reserve, which could impact risk assets.

9/20/2023

Bitcoin Could Dip to $24,900 and Still Be Bullish, Analyst Says

Crypto strategist Credible Crypto suggests that Bitcoin could dip to around $24,900 but still remain on track for a bull market cycle, and he is closely monitoring Bitcoin options open interest as an indicator for the market bottom.

9/25/2023

Major Cryptocurrency Options Expiring This Friday Could Impact Prices

117,000 BTC options contracts and 1.1 million ETH options contracts are set to expire on Deribit, with max pain levels at $26,500 and $1,650 respectively, as traders expect stable prices leading up to the event.

10/27/2023

Deribit Sees $20B in Bitcoin, Ether Options as Crypto Derivatives Market Booms

The combined notional open interest in bitcoin and ether options on Deribit has exceeded $20 billion, indicating a growing interest in options and market sophistication, with the majority of open interest in bitcoin concentrated in calls below its current market price.

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Posted 9/29/2023, 5:28:54 AM