The upcoming Friday marks the expiration of around 107,000 Bitcoin options contracts with a notional value of $6.6 billion. This end-of-month expiry event is significantly larger than the usual end-of-week expiries, potentially leading to market volatility. The put/call ratio for today’s BTC derivatives stands at 0.5, indicating that twice as many long (call) contracts are expiring as shorts (puts). The max pain point for Bitcoin options is $57,000, approximately $4,000 lower than the current spot prices. Despite this, bulls remain in charge of the market, with over $340 million in open interest at higher strike prices of $70K, $75K, and $80K. Total open interest climbs to $590 million at $90K and $770 million at the $100K strike price.
Alongside the significant Bitcoin options expiration, around a million Ethereum options are also set to expire. These contracts have a put/call ratio of 0.59, a max pain point of $3,100, and a notional value of $3.6 billion. This pushes the total crypto options expiration notional value to over $10 billion. Ethereum ETF news is expected to provide clarity early next month, and the implied volatility is anticipated to experience downward pressure following the delivery of today’s contracts.
While the total market capitalization has slightly recovered from a recent dip to hover around the $2.4 trillion mark, sentiment remains bearish. Throughout June, markets have been on a downtrend, with Bitcoin briefly surpassing $62,000 on June 28 before retracing to $61,500. The asset seems to be consolidating at this level after dipping below $60K on June 24. Similarly, Ethereum prices bounced back from a five-week low of $3,260 on Monday, reaching $3,430 at the time of writing.
Overall, the expiration of Bitcoin and Ethereum options contracts is anticipated to bring heightened market activity and potential volatility in the short term. The different metrics, such as put/call ratios, max pain points, and open interest levels, provide insights into traders’ expectations and positions. As the market continues to navigate through these events, investors are closely monitoring price movements and market sentiment to make informed decisions in the crypto space.
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