[ad_1]
Bitcoin (BTC) is bracing for a critical juncture as $5.82 billion worth of crypto options are set to expire tomorrow. The leading cryptocurrency is currently holding a position above $40,000 during European trading hours on Thursday. The expiration event involves BTC options with a notional value of $3.75 billion and ETH options worth $2.07 billion.
Key Focus on Exhalation
Friday's options expiration on Deribit, the world's largest crypto options exchange, involves BTC options with a notional value of $3.75 billion and ETH options worth $2.07 billion of dollars. This represents more than 85% of global activity.
As we approach tomorrow's options expiration, it is clear that the market is gradually recovering from the initial shocks related to the introduction of ETFs and the unwinding of GBTC. Although many traders have shifted their positions from January expiry contracts to February expiry contracts.
Currently, Bitcoin is trading at $39,870, showing resilience ahead of the release of fourth-quarter US gross domestic product (GDP) data and the expiration of a substantial $5.8 billion of crypto options on Deribit.
However, the dollar index, which reflects the greenback's value against major fiat currencies, is trading steady around 103.70.
US GDP Data and Market Sentiment
Traders are closely watching the highly anticipated fourth-quarter U.S. gross domestic product (GDP) data, scheduled for release at 1:30 p.m. UTC. The data is expected to reveal a seasonally adjusted annualized GDP of 2% in the final quarter of 2023, up from 4.9% in the third quarter.
Market sentiment is shifting as traders reassess the likelihood of an early Fed rate cut in the face of the ongoing inflation crisis. Fed funds futures now indicate a 50% chance of a Fed rate cut in March, up from 80% a month ago.
Maximum pain points
Maximum pain point for Bitcoin The January expiration options are $41,000, while Ether’s are $2,300. The maximum pain point represents the level at which option buyers stand to lose the most at expiration. Traditionally, option sellers aim to bring the underlying cash market closer to the maximum critical point before expiration in order to inflict maximum damage on buyers.
The crypto market will be closely watched as US GDP is released and options expire significantly, impacting Bitcoin and Ether prices.
[ad_2]
Source by [author_name]