Bitcoin’s weekly performance before the options expired on April 30th was substantial. BTC was up more than 10% at press time as $ 4.2 billion options expired on Friday.
While there is currently speculation that the asset will experience another period of price swing once it has expired, the options market has had a positive long-term impact on Bitcoin. one that might generate more interest than tomorrow’s schedule.
Bitcoin: monthly expiry vs. quarterly expiry
While the monthly options contracts have massive capital, the chances that no event will occur after tomorrow’s event are high due to the overall balanced price trend in April. Contracts worth USD 3.9 billion (at a price of USD 54,500) are set for the expiry. If the price stays in this range, both calls and puts can be practically offset when they expire.
Hence, the odds for a non-event or generally low volatility price action are generally high.
However, monthly options are usually not as interesting as quarterly options. One reason is the fact that traders with quarterly options can get used to changing trends over a three-month period in order to maximize their profits.
Bitcoin is currently in the middle of a major uptrend, and its quarterly phasing out has proven to be essential to trigger a rally.
Options market; Will it bring BTC to $ 100,000?
If you watch the quarterly progress for the past 6 months or more, you can watch the rally. The collective bullish market has benefited from the entire options industry.
The last two cycles have increased more than 100% and institutional traders are starting to get a strong impression of the market. Currently, Call Buys are placed at $ 80,000 on June 30th, which means traders actually expect the price to outperform this market before the next quarterly expiry.
Ideally, another 100% or more spike would cause Bitcoin to hit a whopping $ 100,000 before June 30, and the possibility remains great.
Ethereum also benefits from Options OI
The options industry has seen the same positive impact on Ethereum as well. Since the introduction of the ETH futures by CME, institutional trading has also been evident for Ether, and the imminent expiry for ETH is estimated at $ 930 million.
Currently, bulls have a $ 115 million advantage over ETH options. Closing above $ 2,240 is an extremely cheap result for the Call Buys.
For Ethereum, the recent all-time highs are evidence that option prices bring some level of momentum during a bullish rally. For Bitcoin, the long-term price hike was tangible, and its elusive $ 100,000 target may depend on the options industry.
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