Hold on to your hats, folks! It's that time again—Crypto Options Expiry Day has arrived, kicking off the fourth quarter with a bang. But will this shake up the spot markets, or is it just another day in the crypto world?
This Friday, October 4th, we're seeing around 17,400 Bitcoin options contracts reaching their expiry date, with a jaw-dropping notional value of about $1 billion. However, don't expect fireworks just yet. This week's expiry is a relatively small fry compared to last week's blockbuster end-of-the-month, end-of-the-quarter showdown. The spot markets, which have been on a bit of a downward slide, might not even bat an eyelid.
Now, let's dive into the numbers. The put/call ratio for this week's Bitcoin options contracts is 0.75, meaning there are more bullish (call) contracts than bearish (put) ones on the table. Meanwhile, open interest remains sky-high at the $70,000 strike price with a whopping $841 million. The $80,000 and $90,000 levels have seen a dip, but $100,000 is still holding strong with $968 million—what a rollercoaster!
Crypto derivatives guru Greeks Live chimed in earlier this week, suggesting we're in for a bit of a market shake-up. They painted a picture of a crypto world in flux, saying, “Quarterly delivery is over, major maturity IVs (implied volatility) are at lower levels, and there's still a lot of downward pressure this week. Historically, October is a better month—now's the time to buy!”
But let's not forget our friend Ethereum. Around 119,000 Ethereum options are also set to expire, valued at $282 million, with a put/call ratio of 0.68. Combined with Bitcoin, this brings the total expiry event to a staggering $1.3 billion.
Despite the buzz, crypto markets took another 2% dip, bringing the total market cap down to $2.21 trillion—the lowest since mid-September. The much-anticipated “Uptober” seems to be fizzling out after the gloomy “Slumptember.”
Bitcoin has been on a rollercoaster ride, hitting a low of $59,950 before clawing back to $61,000 during the Asian trading session. Still, it's hanging by a thread. Ethereum followed suit, dropping near $2,300 before a slight bounce to $2,370. The past week has seen ETH take a 10% hit as the dreaded FUD (fear, uncertainty, doubt) creeps back in.
And let's not forget the altcoins—they've been painting the town red this week, and Friday morning's no exception. So, hold tight, keep calm, and let's see where this wild crypto ride takes us!
