Will Crypto Markets Keep Going When $2.8B Bitcoin Options Expire Today?

About 29,000 Bitcoin options contracts will expire on Friday, November 22, and have a theoretical value of about $2.84 billion.

Today’s options expiration is a bit smaller in magnitude than last week’s, but the crypto spot markets are on fire, with peak prices hitting multiple assets.

A big $9 billion expiration event is coming at the end of the month, next Friday.

Expiration of Bitcoin Options

This week’s batch of Bitcoin options contracts has a put/call ratio of 1.1. This is a rare scenario for BTC options when there are slightly more short contracts (puts) expiring than long contracts (calls). Peak pain, or the point where most losses will occur, is $86,000, well below spot prices, which hit an all-time high of $99,000 on Friday morning.

Open interest (OI), or the value or number of options contracts that have not yet expired, is highest at the $100,000 strike price with $2.2 billion there, according to Deribit.

Crypto derivatives provider Greeks Live observed Bitcoin’s massive rally towards six figures and Ethereum finally woke up.

He also commented on this week’s launch of spot Bitcoin ETF options for BlackRock’s IBIT fund, adding: “There is significant inflow of US money into ETFs and the spot bull market is driven strongly due to a number of favorable factors”.

“Market sentiment remains extremely bullish at this point, with the risk of a BTC pullback mitigated by the broader market recovery.”

Options data from Nov. 22
29,000 BTC options expire with a Put Call ratio of 1.1, a Maxpain point of $86,000 and a notional value of $2.84 billion.
164,000 ETH options are about to expire with a Put Call ratio of 0.65, a Maxpain point of $3,050 and a notional value of $550 million… pic.twitter.com/5ZRhIqbrJj

— Greeks.live (@GreeksLive) November 22, 2024

In addition to current Bitcoin options, there are around 164,000 Ethereum contracts expiring today. These have a notional value of $550 million, a maximum pain of $3,050, and a put/call ratio of 0.65, bringing the notional expiration value of Friday’s combined crypto options to about $3.4 billion dollars

Crypto market rises to ATH

Multiple all-time highs have taken the total market capitalization to a new high of $3.43 trillion on Friday, November 22nd.

Bitcoin once again led the charge, taking advantage of $99,261 at its latest ATH during the Friday morning trading session in Asia. The asset has gained 12% over the past week and is up more than 40% since Donald Trump won the US presidential election.

Ethereum had gained 9% on the day, topping $3,375, but faced strong resistance above it, despite peers like Solana and XRP pumping harder.

ETF Shop President Nate Geraci listed the bullish events that have fueled the momentum in digital assets this week:

So far this week…

-Options trading approved for spot btc ETFs

-Spot btc ETF assets exceed $100 million

– Resignation of SEC Chairman Gary Gensler

-Schwab CEO says he will get involved in spot crypto

-19b-4s filed for 4 spot Solana ETFs

-Btc price close to $100,000

That’s in four days.

— Nate Geraci (@NateGeraci) November 22, 2024

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato Readers on Bybit – Use this link to register and open a FREE $500 position with any currency!