On August 8th, the cryptocurrency market is preparing for a pivotal event, as nearly $5 billion worth of Bitcoin and Ethereum options contracts expire within just half an hour, which could open the door to a wave of sudden price volatility.
According to data from the Deribit platform, 34,977 open contracts for Bitcoin (BTC) and 223,592 contracts for Ethereum (ETH) are expected to expire at 4:00 PM Beijing time.
Regarding Bitcoin, open buy contracts reached 14,237, compared to 20,740 sell contracts, reflecting a sell-to-buy ratio of 1.46, which translates to a nominal value of about $4.087 billion. The current upper limit for buy option prices for Bitcoin has reached $116,000.
For Ethereum, the figures indicate 104,508 buy contracts versus 119,084 sell contracts, with a sell/buy ratio of 1.14, amounting to a total value of approximately $876 million. The current maximum for open buy contracts on ETH stands at $3,675.
These ratios show a significant inclination towards a bearish scenario in the short term for both assets, according to investor trends in the options market. As the settlement date approaches, markets are likely to see an increase in trading volume, especially from traders looking to adjust their positions to avoid potential losses.
Analyses warn of increased risks of "Vega" and "Gamma" fluctuations during this period, which may lead to unusual price movements in the market. Therefore, traders are advised to review risk management strategies and hedge effectively to maintain stability during this critical situation.
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