Bitcoin (BTC) and Ethereum (ETH) took center stage today as options contracts worth billions expired amidst a historic quarterly delivery totaling over $15 billion.Â
For the uninitiated, this quarterly delivery event involves the settlement or resolution of a large volume of crypto contracts, including options and futures contracts, at the agreed terms. This marked the first quarterly delivery of this year.
Interestingly, data suggests that the notional value of $15 billion for this delivery represents the highest quarterly delivery figure ever recorded in the crypto market. This figure reflects the growing institutional involvement in the crypto scene and increasing capital inflows.
Prominent Chinese blockchain report Colin Wu called attention to this development in a recent post, citing information provided by GeeksLive, an options trading data analytics resource.
Today is the big quarterly delivery of over $15bn, the biggest quarterly delivery in history. 135,000 BTC options expired with a Put Call Ratio of 0.85, a Maxpain point of $51,000 and a notional value of $9.5 billion. 1.58 million ETH options expired with a Put Call Ratio of…
— Wu Blockchain (@WuBlockchain) March 29, 2024
Bitcoin Options Record $9.5B Notional ValueÂ
For Bitcoin, 135,000 options contracts expired upon the quarterly delivery. The Put Call Ratio for these contracts stood at 0.85, signaling a predominantly bullish sentiment among traders. This ratio, which compares the number of put to call options, suggests optimism for Bitcoin’s price trajectory.
In addition, Bitcoin’s max pain stood at $51,000, marking the level where the maximum number of options contracts expired worthless. As BTC deviates from this price, now trading above $70,000, this event could trigger significant price movements as traders adjust their positions.
Significantly, the combined notional value of Bitcoin options contracts totaled a staggering $9.5 billion. This is due to massive capital inflows amid institutional interest.
Despite the monumental quarterly delivery, Bitcoin surged during the week, reaching $70,000 and defying expectations.Â
Bitcoin has steadied above the $70,000 territory, but the recent quarterly delivery could make the start of intense volatility for the BTC market. The premier crypto currently trades for $70,385, with 24-hour options Open Interest (OI) rising 2% to $10.24 billion, per Coinglass data.
As the market braces for Bitcoin’s halving event next month, traders have been adjusting their strategies accordingly. The halving event, which halves the reward for mining new blocks every four years, could further bolster BTC’s price by reducing its inflation rate.
Ethereum Options Notional Value Stands at $5.6B
Meanwhile, Ethereum also recorded significantly higher figures, as 1.58 million options contracts expired. The Put Call Ratio for Ethereum stops at 0.63, indicating a similar bullish bias among options traders, albeit slightly lower than that of Bitcoin.
Ethereum’s max pain point was $2,600, with the crypto asset now 35% up from this price, currently changing hands at $3,533. The notional value of Ethereum options contracts amounted to $5.6 billion, a figure that represents massive capital inflows into the ETH options market.Â
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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