Will Today’s $2B Bitcoin Options Expiry Spark a Crypto Market Recovery?

Crypto markets are closely watching this Friday’s Bitcoin options expiry, which has stirred anticipation of increased volatility. Approximately 28,000 Bitcoin options contracts, worth around $2 billion, will expire on Nov. 1, creating potential ripple effects on prices.

This week’s expiry is more modest compared to last Friday’s, which saw more than twice the value of Bitcoin options expire, suggesting a potentially lower impact on spot prices.

Key Details on Bitcoin Options Expiry

The first tranche of November’s Bitcoin options comes with a put/call ratio of 0.92, indicating a relatively even split between bullish and bearish bets. The max pain level—the price that results in the most losses for options holders—is $69,000, close to Bitcoin’s current level. Additionally, open interest (OI) has surged to $1.3 billion at the $80,000 strike, according to Deribit.

Joshua Lim, head of derivatives at Arbelos Markets, noted that CME Bitcoin options saw high volumes this week ahead of the U.S. election, including bullish purchases at the $85,000 strike. This indicates a positive outlook from institutions preparing for possible shifts in the market.

Alongside Bitcoin, approximately 137,000 Ethereum options are also set to expire today, carrying a max pain level of $2,550, a put/call ratio of 0.68, and a notional value of $350 million. Altogether, today’s crypto options expiry has a combined value of around $2.3 billion.

Crypto Market Reaction

Total market capitalization has dropped by roughly $100 billion over the past 24 hours, now standing at $2.43 trillion—a 5.5% dip. Bitcoin nearly hit its all-time high on Oct. 30 but has since corrected, briefly falling below $69,000 in Friday’s early Asian trading session.

Ethereum touched a high of $2,700 before losing momentum and settling around $2,500. Meanwhile, most altcoins have remained stagnant or declined, reflecting a lack of follow-through on Bitcoin’s earlier gains as the week wraps up.

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