25 April, 2024



Market Watch: $9.5 Billion BTC Options Expire, Expects Volatility

29 Mar, 2024

29 Mar, 2024

  • Today’s $9.5 billion BTC options expiry on Deribit may lead to increased volatility as market dynamics shift.
  • CryptoCapo identifies a critical range between $60k and $73k for BTC, with a focus on liquidity pools and anticipation of a pre-halving rally.
  • Bitcoin’s price demonstrates a bearish trend, hovering around $70k, marked by a 0.60% decrease and a notable drop in trading volume by 30%.

Today, Deribit witnessed the expiration of Bitcoin options valued at $9.5 billion, which is poised to inject volatility into the crypto market. Market makers are now adjusting their hedging strategies, previously aimed at maintaining prices within a narrow corridor to mitigate option-related losses.

According to CryptoCapo, a crypto analyst, the cryptocurrency market is currently navigating a delicate balance. A trading band has emerged, spanning from $60k to $73k for Bitcoin. Liquidity outside this zone, both above and below, is becoming a focal point. Given the oversupply and the prevailing bullish sentiment, the market is on the brink of a critical test. Prices are expected to probe the lower end of this range, seeking liquidity beneath the $60k mark.

BTC/USD chart: TradingView

Should Bitcoin manage to recapture its footing above this crucial threshold, the scene could be set for a rally ahead of the upcoming halving. Predictions suggest a potential surge to between $74k and $75k, contingent on market reactions at these pivotal levels.

Hence, investors and traders are urged to tread with caution. The ripple effect of Bitcoin’s movements is significant, with potential downturns for altcoins if Bitcoin dips below the $60k benchmark. This scenario could lead to a 20-30% drop in altcoin values, underscoring the interconnected nature of the crypto ecosystem.

As the market assimilates the impact of the recent options expiry, the overarching sentiment is one of watchful anticipation. Stakeholders keenly observe the market’s response and are ready to adapt to the changing landscape. This period of recalibration could very well dictate the short-term direction of the cryptocurrency market, highlighting the critical interplay between options expiries and market sentiment.

The current market performance highlights a bearish signal as the total crypto market cap drops to $2.65 trillion, a decline of 0.18%. In addition, the total trading volume marks a decrease of 24%, standing at $91.79 billion, as per CoinMarketCap data. 

Bitcoin is trading in a bearish note as the price continues to consolidate around the $70k region. At press time, BTC is exchanging hands at $70,044, down by 0.60% in the past 24 hours. Since losing the $71,500 peg earlier in today’s session, BTC has been trading on a downtrend, touching a daily low at $69,605. An increase in selling pressure has been observed as the daily trading volume suffered a significant drop of 30% at $29 billion.

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