 Bitcoin has fallen over 18% from previous all-time highs as it revisits $50,000 for possibly the last time. But Jay bro, why is Bitcoin crashing bro? I put all my life savings in it. Is the bull run over? Hey Alexa, do I have any new Tinder matches? Well Chad, that's exactly what we're going to go over today. We're going to talk about the largest ever Bitcoin options expiration to date. Currently worth about $6 billion in option contracts are set to expire tomorrow. So if you want to continue to pop bottles, go all in on meme stocks, and making it rain on the other Chad's on Wall Street bets, then you don't want to miss this video. Hey what's up Jay here and welcome to Bitcoin Daily bringing you guys the best tips, tutorials, and ideas to help you guys become profitable and successful traders. The goal of this channel as always is to empower you guys with the resources and knowledge to take you up to that next level. So guys if you're new here make sure to hit that subscribe button and make sure to smash the like as well and turn on the notification bell. Vesters usually look to futures markets for price discovery and look to the options market to gauge the sentiment that's going to prevail. The options market is a good leading indicator for the spot market. Now the options market is usually an all or nothing type of game. On the day of expiration those contracts either have value or are completely worthless. So why does this make the price of Bitcoin go down? So they call it Max Payne. The Max Payne theory here states that the market will gravitate toward the pain point while heading into the expiration. That's because sellers typically institutions with a lot of capital supply often push the price toward the Max Payne point by buying or selling that asset on spot or futures markets. The bullish spin in this is that if Bitcoin makes it through Friday without a major correction a major overhang will be lifted and should shoot the price back up. So the Max Payne price point for the expiration is currently at forty four thousand dollars on Derabit. So Derabit is currently the world's largest crypto options exchange by trading volumes and open position. Now it doesn't mean that the market will move to forty four thousand dollars but it does imply that after Friday this potential downward pressure no longer will exist. You can see here on this photo where it shows the Max Payne price point which is pretty much right in the middle at forty four thousand dollars. Now the Max Payne is calculated by adding the outstanding put and called dollar value of each in the money strike price. So further breakdown on Max Payne and Max Payne price it's the strike price with the most open contracts puts and calls and the price at which the stock would cause financial losses for the largest number of option holders at the day of expiration. So if you look at the monthly option expiration dates you can see that it's brought the market down a little bit every single time and then has continued up. So you see here in October when we were at thirteen thousand two thirty nine then you see it again on the following month in November when the price was at seventeen thousand see it again in December when the price was at twenty three thousand then again in January we were at thirty two thousand that's when we had that big pullback again last month in February we were at forty four thousand and now this month we have more of the same where we're currently sitting at about fifty two thousand dollars. So even though it's pulled back every time the options contracts have expired you will notice the trend here that we've always been hired in the month before. So what does this tell us by the dip? So here you can see in November just over twenty four hours from the day that the options contracts expired we went up seven point two percent then again in December two days after the options expired we went up seventeen percent then in January remember that's when we had the record-setting bitcoin option expiration contracts amount and value which an hour after the options expired we went up fifteen percent. So this is showing you a pattern here that you should be buying this dip because every single time in the last during this bull market since October every single time that we've the price has been pushed down as soon as those contracts expire we've gone up. So basically in conclusion guys buy the dip. Alrighty guys I hope you guys have enjoyed this video and I hope you got a better understanding on option contracts and why the day of expiration for option contracts and leading up to that day on why there's so much more volatility and you know what you can do to plan ahead when these option contracts these option dates the expiration dates are coming up. Open interest is only getting higher and higher which can cause just more and more volatility every time we reach the date of these option contract explorations. So plan accordingly guys and buy the dip. Guys if this is your first time on the channel or if you just been a ghost watcher a ghost viewer and haven't subscribed yet take this time please to subscribe to the channel go ahead and also smash that like button if you guys enjoyed this video and don't forget to turn on the post notifications. I will see you guys on the next video as always peace and love