Greed

2024

Bitcoin

Arthur

Around 13,500 Bitcoin options contracts are due for expiry on Friday, September 6, with a notional value of around $776 million.
Today’s options expiry is relatively small compared to last week’s <a href="https://cryptopotato.com/can-the-big-5-billion-crypto-options-expiry-event-today-shift-market-momentum/" data-wpel-link="internal" rel="noopener noreferrer nofollow">end-of-month expiry</a>, so the impact on spot markets is likely to be minimal.
<h2 id="bitcoin-options-expiry">Bitcoin Options Expiry</h2>
This week’s tranche of Bitcoin options contracts has a put/call ratio of 0.82, which means there are slightly more long (call) contracts expiring than shorts (puts).
Open interest, or the number of value of contracts yet to expire, is still high at strike prices of $70,000 and $75,000, according to Deribit.
Additionally, there is around $720 million in OI at the $90,000 strike price and still $913 million at the $100,000 strike price, suggesting the bulls are still hanging in there for a rally to the north.
<figure id="attachment_358390" aria-describedby="caption-attachment-358390" style="width: 100%" class="wp-caption aligncenter"><a href="https://cryptopotato.com/wp-content/uploads/2024/09/111111.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="size-full wp-image-358390" src="https://cryptopotato.com/wp-content/uploads/2024/09/111111.jpg" alt="Bitcoin OI by expiry. Source: Deribit" width="806" height="653" srcset="https://cryptopotato.com/wp-content/uploads/2024/09/111111.jpg 806w, https://cryptopotato.com/wp-content/uploads/2024/09/111111-300x243.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/09/111111-768x622.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/09/111111-50x41.jpg 50w" sizes="(max-width: 806px) 100vw, 806px"></a>
 <figcaption id="caption-attachment-358390" class="wp-caption-text">
 Bitcoin OI by expiry. Source: Deribit
 </figcaption>
</figure>
On Sept. 5, crypto derivatives provider Greeks Live <a href="https://x.com/GreeksLive/status/1831677682318504055" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">commented</a> that market confidence is continuing to wane.
<blockquote>
 “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.”
</blockquote>
It added that there are expected positive events in the near term and September has been a weaker month as well.
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.
Overall, options activity is waning as market sentiment continues to fall. The Bitcoin Fear and Greed Index has now slipped back into “extreme fear,” with the asset falling below $56,000 again.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
 Bitcoin Fear and Greed Index is 22. Extreme Fear Current price: $56,159 <a href="https://t.co/jyrtLakbIi" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/jyrtLakbIi</a>
 — Bitcoin Fear and Greed Index (@BitcoinFear) <a href="https://twitter.com/BitcoinFear/status/1831844792034070792?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">September 6, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<h2 id="crypto-market-outlook">Crypto Market Outlook</h2>
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 <a href="https://cryptopotato.com/bitcoin-price-unable-to-recover-but-these-two-altcoins-soar-today-market-watch/" data-wpel-link="internal" rel="noopener noreferrer nofollow">dumped</a> to an intraday low of $55,800 during early trading in Asia on Friday. However, it has since recovered to $56,300 at the time of writing.
Former BitMEX CEO Arthur Hayes was bearish, <a href="https://x.com/CryptoHayes/status/1831866865846776035" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">predicting</a> a weekend dump:
<blockquote>
 “BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short.”
</blockquote>
The rest of the market is in an equally bad place, with most of the high-cap <a href="https://cryptopotato.com/these-3-altcoins-are-getting-heavily-shorted-but-is-that-bullish/" data-wpel-link="internal" rel="noopener noreferrer nofollow">altcoins</a> shedding a couple of percent today.
The post <a href="https://cryptopotato.com/can-todays-bitcoin-options-expiry-reverse-market-momentum/" rel="noopener noreferrer nofollow">Can Today’s Bitcoin Options Expiry Reverse Market Momentum?&nbsp;</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Can Today’s Bitcoin Options Expiry Reverse Market Momentum?

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