The leading cryptocurrency Bitcoin [BTC] recently just saw its largest options expiry ever. This marks a serious milestone for the benchmark digital assets, as its options market has been growing at a rapid pace within this year in 2020.
Just this year, the market dynamics seen were largely influenced solely by marginal trading optional, but an evolving landscape signals that options and futures both may play a bigger role in how Bitcoin trades moving forward in upcoming months.
Some analysts do believe that recent expiry did contribute to the recent price decline to as low as $9k price range.
Crypto Market Observing Its Largest Options Expiry Ever
Earlier today, over half the entire Bitcoin open interest expired. This marked the most vital options expiry ever seen by the community.
In line with the data from options trading platform Deribit, these options contracts were worth a sum of 74K Bitcoin, having a notional value of over $675 Mln.
The 2nd leading crypto asset by market cap, Ethereum [ETH], on the other hand also saw a historic expiry today, with contracts worth 309,000 ETH expiring. This only marked 43% of the entire outstanding open interest with a notional value of over $71Mln.
Deribit spoke regarding this data within his recent tweet, adding:
“BTC: 74k BTC out of 138k total OI in BTC options has just expired or 53% with a notional value of roughly USD 675 Mln. ETH: 309k out of 717k total OI in Ethereum options has just expired or 43% with a notional value of roughly around 71 Mln USD.”
The reason why this is often significant is that the option market’s is gaining popularity points to a maturing Bitcoin & the existing cryptocurrency market.
Pointing Options Expiry, No Spark To See Within The Price Volatility
Over the past few weeks, many investors and traders had been pointing to today’s expiry as a possible catalyst for volatility within the market.
However despite this, the price of Bitcoin has rather remained flat for the day.
One explanation for why this was a non-event is as its effects may have already been priced in earlier in the week when the crypto reeled down towards $9k USD from highs of $9,800 USD.
While adding further, another analyst said:
“It seems to me the volatility everyone expects for the 26th June options expiry already happened…”
As the options market continues growing, its influence over Bitcoin’s price action will likely seem to grow.