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10 May 2021

Bitcoin price stalls in April, but $4.2B options expiry may revive run

Bitcoin price stalls in April, but $4.2B options expiry may revive run


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Bitcoin price stalls in April, but $4.2B options expiry may revive run.

What’s interesting about this particular options expiry is that the current max pain price for the expiry is $54,000, which is very close to the current trading price.

The total open interest of Bitcoin options currently stands at $13.54 billion, with over 88% being on Deribit, the largest crypto derivatives exchange by both volume and market capitalization.

He stated that “A huge expiry alone does not indicate that the market is bullish or bearish, but it did restrain the price upswing when the previous quarterly options expired at the end of March.

A large portion of this was about 2,500 put options at a strike price of $50,000, while the max pain price was at $58,000.

Liu explained that the impact of the April 23 expiry was seen directly in the price of Bitcoin: “Bitcoin experienced a lot of selling pressure last Friday and the price managed to get pushed below $50,000 at the time of option settlement, at 4pm HKT [8:00 am UTC].

Ki Young Ju, CEO of crypto analytics firm CryptoQuant, told Cointelegraph: “Bitcoin’s options market is still relatively small for the expiry to have a sizable impact on the spot price.”.

As the debate continues over the impact of the Bitcoin options market on the price of BTC in the long term, analyzing the price trends of the underlying asset shows an interesting aspect.

Barring any dramatic price movements on April 30, this will be the first time in six years that BTC ends the month of April in the red.

As Bitcoin continues to recover from its April mid-month slump, it’s evident that institutional interest in the asset is still on the rise despite the price volatility it has seen recently

While the upcoming $4.2 billion options expiry might not lead to much of an economic impact for options holders, it is highly likely that after the options expiry, the downward pressure on BTC will move away from the current max pain price of $54,000.

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