tl;dr
Around 26,000 Bitcoin options contracts, with a notional value of $2.1 billion, are set to expire on Friday, April 4. The impact on spot markets is expected to be minimal due to the Trump administration's global tariff announcement. The put/call ratio for Bitcoin options is 1.27, with a max pain poi...
Bitcoin options contracts with a notional value of $2.1 billion are set to expire on April 4. However, the impact on spot markets is expected to be minimal due to the Trump administration's tariff announcement. Traders are predominantly bearish on Bitcoin options, positioning for continued choppy price action and selling calls at specific levels for April 4th expiry. Around 204,000 Ethereum contracts are also expiring, contributing to a combined crypto options expiry notional value of around $2.5 billion.
The spot markets have experienced a 6.5% decline in total capitalization, with Bitcoin and Ethereum showing weakness as market sentiment turns bearish. The put/call ratio for Bitcoin options is 1.27, with a max pain point at $85,000. Open interest is falling at higher prices, indicating bearish sentiment.
The impact on spot markets is likely to be minimal as spot traders are still reeling from the Trump administration’s wide-sweeping global tariff announcement on Wednesday. This week’s batch of Bitcoin options contracts has a put/call ratio of 1.27, with a max pain point of $85,000. Open interest (OI) is falling at higher prices, indicating bearish sentiment among derivatives traders.
Additionally, around 204,000 Ethereum contracts are expiring with a notional value of $372 million. The crypto market has seen a 6.5% decline in total capitalization, with Bitcoin and Ethereum facing downward pressure. Bitcoin remains weakened, having fallen below $81,500, while Ethereum is at bear market lows, trading at levels last seen in October 2023. Altcoins across the board continue to weaken as market sentiment turns bearish.
Traders are predominantly bearish, expecting continued choppy price action. They are positioning for more blood and selling calls, particularly at the $87k and $90k to $94k levels for April 4th expiry. The combined crypto options expiry notional value is estimated to be around $2.5 billion.