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$2.6B in Bitcoin and Ethereum Options Expire Amid Market Panic

33,000 BTC options and 219,000 ETH options expire today, pushing implied volatility to yearly highs and triggering a sharp drop in market sentiment.

BTC
ETH

Summary

Greeks.live reports that on February 6, 33,000 Bitcoin options worth $2.6 billion and 219,000 Ethereum options with a notional value of $2.6 billion expired. The expiration spiked implied volatility to yearly highs, with BTC falling below $60,000 and ETH dropping below $1,750. The Fear & Greed Index plunged to 5%, reflecting heightened market anxiety.

Terms & Concepts
  • Options: Financial contracts granting the right, but not the obligation, to buy or sell an asset at a specified price before a set date.
  • Implied Volatility (IV): A metric estimating future price fluctuations in an asset, derived from options pricing and reflecting market sentiment and risk.
  • Fear Index: An indicator measuring investor sentiment or market anxiety, often based on volatility levels or sentiment data.