This Friday, Deribit, a leading derivatives exchange, braces for a substantial expiration of cryptocurrency options, totaling over $9.4 billion, with bitcoin options comprising the majority at $6.35 billion.
The upcoming expiry has sparked notable activity in the options market, particularly for Bitcoin, where the put-call ratio stands at 0.68, signaling an increased interest in put options compared to calls. In contrast, ether options, valued at $3.08 billion, exhibit a lower put-call ratio of 0.49, suggesting a more bullish sentiment among traders.
Amidst this activity, attention is drawn to the largest open interest in year-end expiry calls, notably at a $100,000 strike price for Bitcoin. This optimistic outlook reflects a belief among derivatives players in Bitcoin’s potential to surpass this milestone by December.
QCP Capital analysts interpret this surge in options activity as investors positioning themselves for a post-halving resurgence in bitcoin’s value, anticipating a breakout from its two-month consolidation period.
Standard Chartered’s recent analyst note aligns with this sentiment, projecting a year-end target price of $150,000 for bitcoin and $8,000 for ether.
Options, as derivative contracts, offer traders the right, but not the obligation, to buy or sell the underlying asset at a predetermined price within a specified timeframe. The distribution of put and call options is often used to gauge market sentiment, with put options typically indicating bearishness and call options suggesting bullishness.
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