Expiry Event: ETH/IDR and BTC/IDR Will Fall Because It's Time for a Price Correction?

Bittime - The crypto market is preparing for significant upheaval with the expiry event of Bitcoin (BTC/IDR) and Ethereum (ETH/IDR) options worth $3 billion on March 8, 2024. This event occurs amidst high market volatility, where Bitcoin has just hit a record high above $69,000 before suffering a sharp 10% decline.

Data from Greeks.live shows 29,000 Bitcoin options and 270,000 Ethereum options will experience expiry events, leading the market to two main scenarios: a short squeeze and the sale of options that expire without value.

Exploring Option Expiration Scenarios

Short Squeeze

If the prices of BTC/IDR and ETH/IDR are above the strike price of the majority of the expiry event call options , put option holders will be forced to buy the asset to cover their position. This can trigger a short squeeze, driving sharp price increases, especially if there is an accumulation of long positions from traders looking to take profits.

Sale of No Value Expired Options

If the price of BTC/IDR and ETH/IDR is below the strike price of the majority of expiry event call options, the options will expire without value. Sellers of unprofitable call options may sell their assets to reduce losses, resulting in selling pressure on the market.

Other Factors at Play

Apart from option descriptions, several other factors also influence BTC/IDR and ETH/IDR movements:

• Regulation: Uncertainty regarding crypto regulations from the government can affect investor sentiment.
• Institutional Adoption: The increasing adoption of Bitcoin and Ethereum by financial institutions may drive prices up.
• Technological Developments: Innovation and advancement in blockchain technology can increase the value and utility of crypto.
• Market Sentiment: Investors' confidence and optimism towards crypto plays an important role in price movements.

Impact on ETH/IDR and BTC/IDR Investors

Option expiration can bring both opportunities and risks for investors.

Opportunity

• Short Squeeze: Traders who anticipate a short squeeze can take advantage by purchasing the asset before the expiry.
• High Volatility: High volatility can present an opportunity for experienced traders to take advantage of price fluctuations.

Risk

• Price Drop: If a valueless expiry event option is sold, the price of BTC/IDR and ETH/IDR may drop significantly.
• Market Manipulation: Possible market manipulation by large players can increase risks for investors.

Strategy for Investors

• Diversification: Diversifying a portfolio with other crypto assets can help mitigate risk.
• Fundamental Analysis: Carrying out fundamental analysis of crypto projects and blockchain technology can help investors choose the right assets.
• Risk Management: Implementing appropriate risk management strategies, such as stop-loss orders, can help minimize losses.

Ethereum Price ETH/IDR Today

Source: Bittime.com

On March 8, 2024, the price of Etheruam ETH/IDR was at IDR 61,655,966 per coin, an increase of 3.76% in 24 hours.

Also Read How to Buy Crypto:

Bitcoin Price BTC/IDR Today

Source: Bittime.com

On March 8, 2024, the BTC/IDR price was at IDR 1,057,781,316 per coin, up 0.57% in 24 hours and 8% in the past week. 

Conclusion

The expiration of $3 billion in options on March 8, 2024 could trigger upheaval in the crypto market. Investors need to pay close attention to short squeeze scenarios and selling expiry event options without value, as well as considering other factors that can influence the prices of BTC/IDR and ETH/IDR. Diversification, fundamental analysis and risk management are important strategies for navigating this volatile market.

Check Crypto Prices Today:

How to Buy Ethereum (ETH) on Bittime

You can buy and sell  Ethereum (ETH)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Ethereum (ETH)  is available on Bittime with  the market pair ETH/IDR .  To be able to buy  ETH/IDR  at  Bittime,  make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on  Bittime  is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn the complete guide on how to buy Ethereum (ETH) on Bittime. 

Monitor price chart movements   for Ethereum (ETH) , Bitcoin (BTC) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.