In an occurrence, within the world of cryptocurrency Bitcoin continued to trade above the $69,000 mark on March 29 following the largest quarterly expiration of Bitcoin futures options to date. The resilience of this currency was put to the test as than $15.1 billion worth of cryptocurrency futures options came to a close on the Deribit exchange at 8;00 am UTC marking a significant moment in trading.
Hao Yang, who heads global derivatives trading at Bybit emphasized the magnitude of this event describing it as the options expiration ever seen by both Bybit and Deribit platforms. During expiration periods traders typically adjust their positions by either rolling or unwinding their hedging strategies. Yang mentioned that such adjustments may have an influence on Bitcoins price but usually have effects.
A notable portion of the expired options totaling $9.53 billion consisted of options with a put/call ratio at 0.84. This event also had a “max pain” price potential set at $51,000—a metric used to assess market sentiment and possible volatility levels. Despite concerns about heightened volatility during option expirations Yang likened the max pain point to more of an aspect with impact, on Bitcoins fundamental value and long term pricing trends.
Yangs insights were supported by Andrey Stoychev, a project manager, at Nexos prime brokerage division, who highlighted the equilibrium of the expiration.
He noted the prevalence of call options compared to the value of puts leading to a situation where delta hedging strategies had been mostly resolved expecting little impact on Bitcoins price from the event. Attention is now turning to whether profits from call options will drive investments in the futures market and which contract specifications will attract traders.
Against a backdrop of trading moves Bitcoins market performance remained resilient. The digital currency experienced a 0.7% decrease in the 24 hours leading up to March 29 morning trading at $69,924.
The current market dynamics echo trends seen before Bitcoin halving events – an adjustment that halves the mining reward for blocks and reduces the fresh supply of Bitcoin.
Analysts, including those at Rekt Capital have observed that Bitcoins ability to maintain prices above its peak could indicate the conclusion of the halving correction phase. This sets the stage, for gains as Bitcoin navigates through its four year halving cycle.
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