As the cryptocurrency markets show limited movement, focus is shifting to a major Bitcoin (BTC) options expiration scheduled for October 6.
Roughly 14,000 Bitcoin options contracts, representing an overall notional value close to $400 million, are due to expire on this date. However, this event is less significant than the expiration that took place the previous week.
The “max pain” price for these options is $27,000, which is nearly $700 less than the current Bitcoin market price.
The max pain price indicates the value at which the majority of the open contracts are positioned, and where the greatest losses are realized upon their expiration.
Balanced put/call ratio
The put-to-call ratio for these options is at 0.89, suggesting a nearly even split between those taking long and short stances.
A put option signifies anticipation that an asset’s price will decrease, whereas a call option suggests an expectation that the price will increase.
Over the past week, Bitcoin’s price trajectory has been on the rise, with festive season factors leading to reduced trade volumes during Asian trading times.
Experts highlight that historically, both October and the entire fourth quarter have often witnessed bullish trends in the cryptocurrency market.
Even though there’s a noteworthy presence of traders leaning towards bearish put options, a recent dip in liquidity has sparked rumors of a significant market shift, possibly downward, in October.
Besides Bitcoin options, approximately 200,000 Ether (ETH) options contracts, carrying a notional value of about $330 million, are slated to expire on October 6.
The put/call ratio for these Ether options closely mirrors that of Bitcoin, standing at 0.87.
While the options expiration looms, its influence on the spot markets is still ambiguous. Often, such events transpire without causing any marked disturbance.
Bitcoin has recently seen a 3% dip from its previous surge to $28,500 and is now hovering around $27,700.
Meanwhile, Ether has recorded a 6.6% fall since its high on Monday and is presently valued at $1,630.