Bitcoin, the leading cryptocurrency, has recently surpassed the $81,000 mark, reaching a three-month high thanks to its significant surge.
The price increase is believed to be influenced by the decline in US Treasury bond yields, pressure on the US dollar, increased institutional demand for spot Bitcoin ETFs, and the closing of short positions.
After Bitcoin broke through the $81,000 level, the cryptocurrency market is preparing for an options expiry session scheduled for Friday. These options are particularly significant as they fall on the last Friday of both the week and the month.
According to weekly data, on August 28, approximately $6.4 billion worth of Bitcoin options will expire on the derivatives exchange Deribit. The fact that the number of call options exceeds the number of put options indicates that bullish sentiment remains. However, the simultaneous expiry of such a large volume of options could increase market volatility.
The $75,000 and $80,000 Levels Are Especially Significant!
According to Coindesk data, 44,639 BTC options are call contracts, while 37,061 are put contracts. Consequently, the put/call ratio is 0.83, with a ratio below 1 indicating that overall expectations for price increases in the current position are stronger.
Analyzing the data, the $75,000 and $80,000 strike prices in the call options market are particularly noteworthy. Currently, there are open call option positions worth approximately $236 million at the $75,000 strike price, while the notional value of positions at the $80,000 strike price is around $157 million.
Bitcoin's recent rise to $80,000 means market makers need to manage option risks at these levels. This could increase trading activity and lead to sharper price fluctuations and heightened volatility around these key price points.
In an interview with Coindesk, Deribit's Chief Risk Officer, Sean Fernando, stated that the upcoming options expiry date is an event that warrants close attention. According to Fernando, the fact that approximately 20% of open Bitcoin positions on Deribit are expiring during this period, combined with sharp price fluctuations over the past week, makes the market even more sensitive.
*This is not investment advice.
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