Major cryptocurrency market events on Friday will determine the market's direction in the coming days, before the Bitcoin halving. Cryptocurrencies will see the largest Bitcoin and Ethereum options expiration, leading to cryptocurrency derivatives exchange Deribit settling over $15 billion in Bitcoin and Ethereum options.
Moreover, the US Bureau of Economic Analysis The US Federal Reserve's preferred measure of inflation (PECE) and core personal consumption expenditures (PCE) will be released. Experts estimate that inflation will calm further, but the annual value may shock the market. Chairman of the US Federal Reserve Jerome Powell Also to talk about macroeconomics and monetary policy on March 29.
Bitcoin and Ethereum options monthly and quarterly expiry
Traders are preparing for monthly and quarterly expirations, which is… The largest cryptocurrency expiration in history. The Cryptocurrency Greed and Fear Index fell to 80 (extreme greed) from 83 over the past 24 hours, indicating reduced pre-expiry buying and PCE inflation data.
This Friday marks one of the largest expirations in the history of the cryptocurrency derivatives exchange, Derbit said Bitcoin options worth $9.5 billion Open interest will expire out of $26.3 billion. Furthermore it, ETH options worth $5.7 billion Open interest of a total of $13.2 billion will expire on March 22 at 8:00 AM UTC. The market could see massive buying during the post-expiry period, as traders eye a new all-time high for BTC and ETH prices.
Furthermore, $465 million in BTC March Futures and $230 million in ETH March Futures will expire, roughly $700 million of the $1.9 billion.
and what is worth to mention, Options worth 135 thousand Bitcoin Of the face value $9.5 billion is set to expire, with a sell-through ratio of 0.85. The maximum pain point is $51,000, which indicates that massive volatility is expected amid massive deliveries and reshuffling of positions. Price movements are always expected to be volatile during options expiration, but positive sentiment will likely push upward momentum in BTC price towards $75K.
BTC price is currently trading at $71,200, up 2% from the 24-hour low of $68,381.
Furthermore it, 1,575K Ethereum options The par value of approximately $5.6 billion is scheduled to expire, with a put ratio of 0.63. The maximum pain point is $2,600, which is also higher than the current price of $3,560. Traders should monitor drastic changes in trading volumes to confirm a recovery or decline in ETH prices.
At the same time, call volume is higher than put volume before the key expiration day, with a put/call ratio of 0.68. ETH price is trading at $3,581, up 3% from the 24-hour low of $3,460.
Greeks Live Market Researcher Adam In a post on X, he said that hedging costs for market makers increased significantly compared to last week, with positions also accelerating. He added that the Matthew Effect of trading enthusiasm is also a factor influencing trading volatility during US business hours.
Read more: A Bitcoin option sale is likely before the end of the quarter, rejecting the Bitcoin price at $72,000
Can the rally start immediately after expiration?
Investors anticipating a rally in the cryptocurrency market will be disappointed as personal consumption expenditures inflation data and Federal Reserve Chairman Jerome Powell's speech are likely to put pressure on the price of Bitcoin.
In the recent bull market, Derebit saw the largest expiration on 100,000 BTC options with a notional value of $3.1 billion. BTC price collapsed after expiration. However, demand from spot Bitcoin ETFs will help reduce some of the impact of options expiration.
analyst Michael van de Poppe He said that Bitcoin is consolidating above crucial levels and another ATH is expected if it remains above $67K. “Overall, returns appear to be relatively bullish heading into Bitcoin’s pre-halving.” It is expected that the correction in BTC price will be immediately bought by whales and investors.
Senior analysts Marcus Thelen Bullish as Bitcoin price rises above $100,000 and reaches $140,000 after Bitcoin halving. However, he also warned that it could be invalidated if Bitcoin trades below $68,000 due to market volatility before the end of the month.
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