Bitcoin Options Expiry: $776M Worth of BTC Contracts Expire Today, Bulls Still Hoping for a Rally to the North

Around 13,500 Bitcoin options contracts are due for expiry on Friday, September 6, with a notional value of around $776 million.

A total of 13,500 Bitcoin options contracts are set to expire on Friday, September 6, with an estimated notional value of $776 million. This batch of options is relatively smaller compared to last week's end-of-month expiry.

As a result, their impact on spot markets is expected to be minimal.

Bitcoin Options Expiry Today

This week's tranche of Bitcoin options has a put/call ratio of 0.82, indicating that there are slightly more long (call) contracts expiring than shorts (puts).

According to Deribit, open interest, which represents the value of contracts yet to expire, remains high at strike prices of $70,000 and $75,000.

Furthermore, there is approximately $720 million in OI at the $90,000 strike price and still $913 million at the $100,000 strike price, suggesting that the bulls are still anticipating a rally to the north.

On Sept. 5, crypto derivatives provider Greeks Live noted that market confidence is continuing to dwindle.

“In terms of options data, the major term Skews are all veering in bearish, and implied volatility is slightly higher. Overall, the options market's expectations for the future are skewed toward short-term negativity.”

It also noted that there are expected positive events in the near term and that September has also been a weaker month.

In addition to this week's Bitcoin options, there are around 126,000 Ethereum options expiring with a notional value of $304 million. These contracts have a put/call ratio of 0.63.

As market sentiment continues to decline, overall options activity is waning. The Bitcoin Fear and Greed Index has now slipped back into “extreme fear,” with the asset dropping below $56,000 again.

Bitcoin Fear and Greed Index is 22. Extreme FearCurrent price: $56,159 pic.twitter.com/jyrtLakbIi

— Bitcoin Fear and Greed Index (@BitcoinFear) September 6, 2024

Crypto Market Outlook

Another day in the red has seen total market capitalization decline by a further 3% on the day to $2.08 trillion. It is now back at its lowest level since the Black Monday crash on Aug. 5.

Bitcoin price briefly dipped to an intraday low of $55,800 during early trading in Asia on Friday. However, it has since recovered to trade at $56,300 at the time of writing.

Former BitMEX CEO Arthur Hayes was bearish, predicting a weekend dump.

“BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short.”

The rest of the market is in an equally bad place, with most of the high-cap altcoins shedding a couple of percent today.

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