As we approach Friday, July 26, the market is anticipating a significant event in the cryptocurrency space. Around 61,200 Bitcoin options contracts are set to expire with a notional value of approximately $4.26 billion. This particular expiry event is larger than usual expiries due to it being at the end of the month. Despite the recent launch of spot Ethereum ETFs in the United States, spot markets have experienced a decline in momentum this week.
The put/call ratio for the Bitcoin options expiry stands at 0.61, indicating that there are almost twice as many long contracts expiring as shorts. Open interest at higher strike prices seems to favor the bulls, with $942 million at a $70,000 strike price and an impressive $1.3 billion at a $100,000 strike price. On the put side, there is approximately $500 million in open interest at the $60,000 strike price. The total value of Bitcoin options contracts expiring on July 26 stands at around $6 billion when combined with Ethereum options.
In addition to the Bitcoin contracts, there are approximately 500,000 Ethereum options contracts expiring on the same day, with a notional value of $1.76 billion. The put/call ratio for Ethereum contract expiries is 0.46, indicating that there are more than twice as many long contracts expiring than shorts. The highest amount of open interest is observed at the $4,000 strike price, totaling over $520 million.
Despite the launch of spot Ethereum ETFs, the market has seen a decline this week. Bitcoin retraced to $64,000 on July 25 after failing to break through resistance at $68,000. However, it managed to reclaim $67,000 during the Friday morning Asian trading session. On the other hand, Ethereum has struggled even more, with a significant 11% drop since the launch of spot ETFs, reaching $3,100 on July 25 before bouncing back to $3,250 during Asian trading on Friday.
The upcoming expiry of both Bitcoin and Ethereum options contracts, totaling around $6 billion in notional value, is expected to have a notable impact on the cryptocurrency market. Traders and market participants are closely monitoring the situation to gauge potential price movements and market sentiment following the expiry event.
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