BTC & ETH contract options expire soon, Crypto weakened

Jakarta, CNBC Indonesia – The crypto market is moving differently today (23/10/2024) with a tendency to weaken ahead of now. bitcoin (BTC) and ether (ETH) monthly options contracts expire on Friday this week.

Referring from CoinMarketCap on Wednesday (23/10/2024) at 06:27 WIB, the crypto market tends to be different. Bitcoin rose 0.06% to US$67,540.08 and was in the positive range of 1.23% weekly.

Ethereum fell by 1.62% in the last 24 hours and in the week it strengthened by 1.25%.

BNB slipped 1.01% daily and in a week rose 0.24%.

Similarly, XRP slipped 2.06% in the last 24 hours and in the last seven days it decreased 0.99%.

The CoinDesk Market Index (CMI), which is an index of the market capitalization weighted performance of the digital asset market, fell 0.26% to 2,479.81. Open interest fell 1.01% at US $72.68 billion.

At the same time, the fear & greed index reported from coinmarketcap.com shows the number 57 which shows that the market is in a neutral phase with the current economic conditions and the crypto industry.

Quoted from coindesk.com, Bitcoin has not passed the $70,000 level even though heavy cash flows have been seen entering the Bitcoin Spot ETF since October 11, 2024.

An interesting thing to note, as of 07:11 WIB, the flow of money traded on US exchanges (Bitcoin Spot ETF) on October 22, 2024 was recorded that an outflow of US $ 134.7 million was observed.

This happens at the same time as the monthly bitcoin (BTC) and ether (ETH) options contracts expire on Friday this week.

BTC options worth US$4.2 billion and ETH worth US$1 billion will expire on Deribit at 08:00 UTC. An option gives the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price within a specified period of time.

According to Deribit data, it is worth noting that the value of more than US $ 682 million of BTC options, which is equal to 16.3% of the total US $ 4.2 billion, is expected to end “in the money” (BMI), the majority. of which call options. Call options with a strike price below the current market price are considered ITM, while ITM put options are those with a strike price above the spot price.

This momentum can cause market volatility as holders of profitable ITM options tend to want to close their positions or move positions close to expiration. Open interest distribution at the most recent quarterly close that ended in late September showed a similar pattern.

CNBC INDONESIA RESEARCH

(rev)