Bitcoin Options Expiry: Put-Call Ratio Signals Easing Crypto Market Volatility

After facing strong resistance at $61,300 levels this week, the Bitcoin price tanked all the way under $57,000 on Thursday before recovering partially.

Bitcoin options traders are bracing for a relatively muted expiry on Friday, with the total put-call ratio signaling a tight battle between bullish and bearish traders.

The total open interest set to expire on August 16 amounts to 24,000 BTC, valued at $1.39 billion. The cash-settled put open interest is valued at $794 million, while the call open interest is pegged at $594 million.

At press time, the Bitcoin price is trading at $58,077, down 5% on the day and charting a clear bearish trend following a strong rally earlier this week. The BTC price charts show a clear resistance at $61,300 levels, and the bears are now attempting to push the price down to $54,000.

Bitcoin Options Expiry Details (August 16)

The Bitcoin options are expiring at a rate of 24,000 BTC, with a put-call ratio of 0.83, a notional value of 41.4 billion, and a max pain point of $59,500.

A put-call ratio that is close to 1 shows that the bulls and bears are having a tough fight among themselves. As both parties attempt to influence the price direction, the market volatility is bound to remain low.

This batch of options expiring on Friday represents only 10% of the total open positions in the Bitcoin options market. Upcoming batches of options expiring in August, September, and December each account for just over 20% of the total open interest.

Hence, the options term distribution shows a relative balance throughout the year, with each quarter having a significant presence in the options market. This distribution also contributes to the overall resilience of the crypto market.

Bitcoin Options Expiry Hints at Easing Market Volatility

The Bitcoin options market has been closely watched by traders and analysts to gauge the market sentiment and predict future price movements. According to a recent report by Deribit, the crypto options market is hinting at easing market volatility in the future.

The options market is pricing in a realized volatility of 70% for the next three months, which is significantly lower than the current spot market volatility of 105%. This spread between the options and spot market volatility is decreasing, indicating that the market could be entering a more stable phase.

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