Key Points
- Bitcoin options worth $6.35 billion are set to expire on Deribit exchange this Friday.
- Ethereum options with a notional value of $3.08 billion are also due to expire.
Bitcoin options with a notional value of over $6.3 billion are scheduled to expire on the Deribit derivatives exchange this coming Friday.
These options make up the majority of the total $9.4 billion in cryptocurrency options due to expire on the same day.
Market Sentiment and Expiry
As the end of the month approaches, the put-call ratio has risen to 0.68, indicating an increase in the number of put options compared to calls from the previous week.
This ratio is a key indicator of market sentiment, with a higher number of puts suggesting a bearish outlook.
In addition to Bitcoin options, Ethereum options worth $3.08 billion are also set to expire.
However, the put-call ratio for Ethereum contracts is significantly lower at 0.49, suggesting a more bullish sentiment for this cryptocurrency.
End-of-Year Predictions
Data from Deribit shows that the largest open interest leading up to the year-end expiry is for calls at a $100,000 strike price for Bitcoin.
This suggests that derivatives traders expect Bitcoin’s value to exceed this price by December.
This optimism aligns with a recent analyst note from Standard Chartered, which projected an end-of-2024 target price of $150,000 for Bitcoin and $8,000 for Ethereum.
Options are derivative contracts that give the holder the right, but not the obligation, to buy or sell the underlying asset at a predetermined price on or before a specific date.
A call option provides the right to buy, while a put option offers the right to sell.
It is generally assumed that a trader buying put options has a bearish outlook on the market, while a call buyer is bullish.