Is $BTC Price Set to Follow S&P 500’s Bearish OPEX on Friday and Crash?
With $249M Gamma for S&P 500 (SPX), it could catalyze massive volatility that could bleed into the stock and crypto market, especially with Bitcoin (BTC).
Here’s how BTC price may react to this Friday’s options expiry. Will Bitcoin (BTC) crash to $100,000 or lower or bounce to new ATHs?
According to data from Menthor Q, Friday’s “exipiration is massive.” The S&P 500 (SPX) faces a high-stakes test on May 16, as $249 million in gamma exposure (34.9%) rolls off during monthly options expiry (OPEX).
With $223 billion in delta hedging flows in play, dealers’ unwind could flatten volatility and spark a directional move, potentially downward.
This month, the S&P 500 faces higher risk than usual due to the expiry of 249 million in gamma exposure. The risk is mainly in the form of directional moves caused by deal flow stabilization.
Hence, a roll off in gamma often causes key price support or resistance levels to vanish, leading to rapid breakouts or reversal scenarios.
Due to the correlation between the stock market and cryptos, a risk-off sentiment in the S&P 500 could also influence BTC price moves as well.