Over $2.2 Billion in Bitcoin and Ethereum Options Expiring on Good Friday

On Good Friday, over $2.2 billion in Bitcoin and Ethereum options contracts are expiring amid macroeconomic uncertainty and scrutiny of Federal Reserve policies. The overall sentiment remains slightly optimistic despite bearish tendencies. Analysts warn of potential black swan events affecting market stability and suggest the purchase of out-of-the-money put options.

On April 18, coinciding with Good Friday celebrations, over $2.2 billion worth of Bitcoin and Ethereum options contracts are set to expire. Amidst ongoing macroeconomic uncertainties, including pressure from former President Donald Trump on the Federal Reserve to lower interest rates, the markets are experiencing significant volatility.

A total of 23,221 Bitcoin (BTC) options contracts worth $1.966 billion are expiring today, with a put/call ratio of 0.96, indicating a higher demand for purchase (call) options. The maximum pain or strike price is at $82,000, where the most significant financial losses will occur for holders. In addition, 177,130 Ethereum contracts, valued at $279.789 million, are also expiring, with a put/call ratio of 0.84 and maximum pain at $1,600.

Compared to last week, when approximately $2.5 billion of BTC and ETH options expired amid short-term price drops, this week shows a slightly smaller volume. Traders should pay attention to these expirations as they may introduce price volatility, though the lower put/call ratios suggest overall optimism in the market.

Analysts from Deribit observe low volatility and flat skew, indicating a calm market, while CoinGlass shows that price swings post-expiry are common, suggesting potential shifts in market momentum. They question whether the current calm will precede a significant price move after expiry.

Greeks.live analysts share this perspective but note a prevailing bearish to neutral sentiment among traders. They anticipate choppy market behaviour before potentially targeting price levels between $80,000 and $82,000. Currently, Bitcoin is trading at $84,648, just above the critical strike price of $82,000.

They attribute this calm to a lack of impactful news from Trump, suggesting continued instability from trade wars and uncertainties in the market. The recent reduction in expectations for interest rate cuts by Jerome Powell has increased correlation between crypto and traditional markets.

Greeks.live analysts warn of an elevated risk for a black swan event, indicating unforeseen occurrences that could disrupt the market significantly. They advised traders to consider buying out-of-the-money (OTM) put options, which have no intrinsic value but could gain value before expiry as market conditions evolve.