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Home Tech Crypto Bitcoin bears have a $340M lead heading into Friday’s BTC options expiry

Bitcoin bears have a $340M lead heading into Friday’s BTC options expiry

Document Analysis NLP IA

501
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neutral
sentiment

Sentiment-0.00020697167755991
objective
redaction

Subjectivity0.45886710239651
it's an affirmation
Affirmation0.55238095238095

Highlights

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FREQ, RAKE or TFIDF
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Key Concepts (and relevance score)

Summary (IA Generated)

Bitcoin (BTC) price is making a slow recovery after facing a sharp 16% correction in the early hours of April 18.

However, neutralizing options exposure usually requires a dynamic hedge, meaning positions must be adjusted according to Bitcoin’s price.

These arbitrage desksrisk adjustments usually involve selling BTC when the market drops, which as a result, adds further pressure to long liquidations.

Therefore, it makes sense to understand the current level of risk as the April 23 options expiry approaches.

While the neutral-to-bullish call (buy) option provides the buyer with upside price protection, the opposite happens with the more bearish put (sell) options.

By measuring each price level’s risk exposure, traders can gain insight into how bullish or bearish traders are positioned.

However, bears and bulls are apparently balanced as the call (buy) options total 45% of the open interest.

While the initial picture seems neutral, one must consider that the $64,000 call (buy) and higher options are almost worthless, with less than three days left before expiry.

The neutral-to-bearish put options dominate with 70% of the remaining 19,930 BTC contracts.

13 billion considering the current Bitcoin price, and this gives the bears a $450 million advantage.

Meanwhile, the neutral-to-bearish put options amount to 9,000 BTC contracts at $55,000 and higher strikes.

As things currently stand, the expiries between $57,000 and $64,000 are reasonably balanced, which suggests that the bears have an incentive to keep the price down on April 23.


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