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 to date. We're going to talk about the largest ever Bitcoin options expiration to date. Currently worth about $6 billion in option contracts that are set to expire tomorrow. So if you want to continue to pop battles, go all in on meme stocks and making it rain on the other chads 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, make sure to smash the like as well and turn on the notification bell. Vestus usually looks 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 a 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 pain. The max pain theory here states that the market will gravitate toward the pain point while heading into their expiration. That's because sellers typically institutions with a lot of capital supply often push the price toward the max pain point by buying or selling the 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 pain price point for the expiration is currently at $44,000 on Derivate. So Derivate 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 $44,000 but it doesn't apply that after Friday, this potential downward pressure no longer will exist. You can see here on this photo where it shows the max pain price point, which is pretty much right in the middle at $44,000. Now the max pain is calculated by adding the outstanding put and called dollar value of each in the money strike price. So further breakdown on max pain and max pain price, it's the strike price with the most open contracts puts and cause 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 13,239, then you see it again on the following month in November when the price was at 17,000. See it again in December when the price was at 23,000. Then again in January, we were at 32,000. That's when we had that big pullback. Again last month in February, we were at 44,000 and now this month we have more of the same where we're currently sitting at about 52,000 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 24 hours from the day that the options contracts expired, we went up 7.2%. Then again in December, two days after the options expired, we went up 17%. Then in January, remember that's when we had the record setting Bitcoin option expiration contracts amount and value, which in hour after the options expired, we went up 15%. 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 f***ing dip. All righty 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, 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. 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 expiration. So plan accordingly guys and buy the dip. Guys, if this is your first time on the channel or if you've 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.