BTC and ETH options can provoke market volatility

Tomorrow, May 16, the options for over $ 3.1 billion on bitcoin and ether expire on the Deribit exchange. This event can seriously affect the short -term volatility of the cryptocurrency market. Especially taking into account the current dynamics of open interest and arrangement of optional rates.

The amount of open bitcoin contracts is $ 2.66 billion. The ratio of the Putes to the Kollam is almost neutral (0.99), but the level of maximum pain (Max Pain) is at $ 100,000, which is significantly lower than the current spa price. This means that most traders will be unprofitable if the cost of bitcoin continues to grow, and some market participants may begin to close long positions.

Options are opened by the air of $ 525 million. The ratio of the Putes to the collles above the unit is 1.24, which indicates the predominance of protective rates. The level of maximum pain is $ 2200, also below the current price of ETH. This can affect the mood of participants preparing for possible correction.

Despite the local predominance of protective positions, the ETF-stitching and institutional activity remain at a high level. This suggests that large market participants are still interested in continuing growth. Nevertheless, the accumulation of optional interest below current levels can lead to increased volatility in the case of external pressure.

The OI distribution indicates significant fears about the decrease. This is especially noticeable in clustering of plate opticals less than a spot. Such a mood is able to increase pressure on the market on the day of expiration, especially if external macroeconomic or news triggers appear.

According to analysts, expiration can lead to a “chop zone”-a period of price fluctuations without a clear direction. But thanks to proactive risk management and positive cash flows from funds, sharp collapses are not expected without external pressure.

Author

Peter Ivanov