Bitcoin, $1.9 Billion Option Expiry Bomb Warning...Will it hold $70,000?

▲ Bitcoin (BTC) / ChatGPT generated image

As approximately $1.9 billion worth of Bitcoin (BTC) options approach expiry, the potential for increased short-term volatility in the virtual asset market is growing.

CryptoPotato, a specialized cryptocurrency media outlet, reported on April 10 (local time) that approximately 27,000 Bitcoin option contracts are set to expire. The notional value of these expiring contracts amounts to approximately $1.93 billion, with the market's maximum pain price set at around $70,000. The Put-Call Ratio is observed at 0.96, indicating that investor sentiment regarding upward and downward movements is evenly balanced.

Bitcoin price recently attempted to break through $75,000 but met resistance, pushing it back to a support level near $70,547. As the options expiry approaches, a "pinning" phenomenon may occur, where the price converges towards the maximum pain price of $70,000, requiring caution from investors. Market participants anticipate that prices could fluctuate temporarily as dealers' hedging positions are released after the expiry.

Ethereum (ETH) is also facing options expiry worth approximately $370 million. About 176,000 Ethereum contracts are scheduled to terminate, with the maximum pain price identified at $2,150. Ethereum's Put-Call Ratio recorded 1.04, suggesting a relatively more pessimistic outlook compared to Bitcoin. Ethereum's price is currently trading near key support levels, focusing on exploring its direction after the options expiry.

The total options expiry volume for the entire virtual asset market is around $2.3 billion, which is smaller than the large-scale expiry at the end of the last quarter. Experts diagnose that while this expiry may not have the power to shake the entire market, whether Bitcoin can defend the $70,000 level will be a watershed moment determining the continuation of the bull market. Especially if macroeconomic volatility is added, coinciding with the release of US economic indicators, price changes larger than expected could occur.

The market is watching to see if Bitcoin can regain upward momentum as uncertainty resolves after the options expiry. Historically, large-scale options expiries have often been followed by a decrease in market volatility and the formation of new trends. Investors are closely monitoring the strong buying pressure formed around $70,000 and the movements of whales, observing price trends over the weekend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*