How Will Huge $15B End-of-Quarter Crypto Options Expiry Move Markets Today?

Around 195,400 Bitcoin options contracts will expire on Friday, Mar. 27, with a notional value of roughly $13.4 billion.

Key takeaways

Quick scan — what you need to know:

• Around 195,400 Bitcoin options contracts will expire on Friday, Mar.
• 27, with a notional value of roughly $13.4 billion.
• This event is much larger than usual, being an end-of-month and end-of-quarter expiry, so there may be some volatility in spot markets.
• Crypto prices have been flat over the past week, with total capitalization returning to Monday’s levels.

Background

What led here, in plain terms:

• Bitcoin Options Expiry This week’s big batch of Bitcoin options contracts has a put/call ratio of 0.61, meaning that there are many more longs than shorts expiring.
• Max pain is around $75,000, according to Coinglass, which is much higher than current spot prices, so many could be out of the money on expiry.
• Open interest (OI), or the value or number of Bitcoin options contracts yet to expire, remains highest at the $60,000 strike price on Deribit, with $1.6 billion in bearish bets.
• Total BTC options OI across all exchanges has been climbing this month, reaching $45 billion.

Why it matters

Why readers and decision-makers should care:

• Ether prices are in serious danger of dropping below $2,000 again over the weekend and were trading at $2,070 at the time of writing.
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