This Friday, leading derivatives exchange Deribit is bracing for significant expiration of cryptocurrency options totaling over $9.4 billion, with Bitcoin options accounting for the majority at $6.35 billion.
The upcoming expiration has sparked notable activity in the options market, particularly for Bitcoin, as the put-call ratio stands at 0.68, increasing interest in put options compared to calls. In contrast, $3.08 billion worth of Ether options have a lower put-call ratio of 0.49, indicating more optimism among traders.
Amid this activity, open interest at the year-end expiration date appeared to be the largest, especially with Bitcoin’s strike price reaching $100,000. This optimistic outlook reflects derivatives participants’ belief in Bitcoin’s potential to surpass this milestone by December.
QCP Capital analysts interpret this surge in options activity as Bitcoin’s value positioning itself for a post-halving rebound as investors anticipate a breakout from a two-month consolidation period.
A recent analyst note from Standard Chartered was consistent with this sentiment, predicting year-end price targets of $150,000 for Bitcoin and $8,000 for Ethereum.
An option is a derivative contract that gives traders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a certain period of time. The distribution of put and call options is often used to measure market sentiment, with put options typically indicating bearishness and call options indicating bullishness.
Featured Image: Freepik
Please see disclaimer