Whale Turns Bearish Ahead of $2 Billion Bitcoin and Ethereum Options Expiry
A significant trader has taken a bearish position on Bitcoin and Ethereum ahead of a $2.15 billion options expiry on Deribit, suggesting potential downside risk.Summary
A large-scale trader, referred to as a "whale," has accumulated over 2,000 Bitcoin (BTC) put contracts, indicating a bet that the price will fall below $66,000. This move occurred just as $2.15 billion in Bitcoin and Ethereum (ETH) options are set to expire on Deribit. The whale had previously closed a profitable long trade, suggesting a belief that the $66,000-$68,000 range represents resistance. With BTC trading at $66,575, the spot price is below the max pain level of $68,000, meaning the whale's puts will gain value if BTC doesn't close the gap before the 08:00 UTC settlement. Bitcoin accounts for $1.84 billion of the total notional value, with a put-to-call ratio of 0.54, while Ethereum’s expiry is smaller at $319.9 million with a put-to-call ratio of 0.72, indicating heavier downside hedging. The hours leading up to the settlement are expected to see significant gamma hedging activity, potentially driving the price towards the max pain level or below $66,000.
(Source：BeInCrypto)