Impending Expiry of OTC Contracts has Bitcoin and Ethereum Investors on Edge
On March 17th, according to Deribit data, option contracts with over $1.19 billion BTC and $490 million ETH will expire for delivery today. The maximum pain poi
On March 17th, according to Deribit data, option contracts with over $1.19 billion BTC and $490 million ETH will expire for delivery today. The maximum pain point price for BTC is $23000; The maximum pain point price for ETH is $1550.
Data: $1.19 billion BTC and $490 million ETH option contracts will expire for delivery today
Analysis based on this information:
Deribit, the world’s leading cryptocurrency options exchange, reported that on March 17th, options contracts worth over $1.19 billion in Bitcoin (BTC) and $490 million in Ethereum (ETH) would expire for delivery. This is a significant amount, and investors are keeping their eyes glued to the price charts, trying to predict the direction of the market.
The concept of “maximum pain point” refers to the pain felt by the majority of option buyers if the price of the underlying asset moves in the opposite direction to their expectations. According to Deribit, the maximum pain point for BTC is $23,000 and for ETH is $1550. It is important to note that this is not a price prediction but rather an estimate of the price where the majority of option traders will feel the maximum pain.
The expiry of these options contracts will likely lead to increased volatility in the cryptocurrency market. This is because traders with open positions will have to close them out or roll them over to the next expiration date. The volume of these contracts expiring can create a sense of panic among investors, further resulting in an increase in trading activity.
This situation could either lead to a surge in the value of BTC and ETH as investors move to secure their gains. Alternatively, the price could drop significantly as investors cash out their profits, leading to a bearish market.
Still, it’s worth noting that there is no way to know precisely how the market will react to the derivatives expiry. Therefore, traders and investors should be cautious while making financial decisions.
To conclude, investors and traders are bracing themselves for a volatile period that could have significant consequences on the prices of BTC and ETH. As options contracts worth over $1.19 billion in BTC and $490 million in ETH expire, the maximum pain point for BTC is $23,000, and for ETH is $1550. The market will have to wait and see how things play out. In the meantime, it is wise to exercise caution when making financial decisions in the crypto market.
In summary, the expiry of over a billion dollars worth of option contracts in BTC and ETH on March 17th has cryptocurrency investors on edge, who are apprehensive of price fluctuations. The maximum pain point for BTC is $23,000, while for ETH, it is $1550. The possible outcomes of this event include either a price hike or drop of both currencies. It is prudent to be cautious with financial decisions until the market stabilizes.
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