About 107,000 Bitcoin options contracts, with a notional value of $6.6 billion, expire next Friday.
Moreover, it is a month-end expiry event, which is much larger than the usual weekend expiry, so there may be a little volatility in the market.
Bitcoin Options Expiry
The vast majority of bitcoin derivatives today have a put/call ratio of 0.5, meaning that twice as many buy (long) contracts expire as sell (sell) contracts. The maximum pain point, or the price at which most losses will be realized, is $57,000, about $4,000 below current spot prices.
Bulls remain in charge of Bitcoin options markets with over $340 million in open interest at higher strike prices of $70,000, $75,000 and $80,000. Furthermore, total OI stands at $590 million at $90,000 and $770 million at $100,000 strike price, According to To Deribet.
Cryptocurrency derivatives instrument provider Grex Live commented that June was a difficult month for the cryptocurrency market, “with a more pessimistic atmosphere as Bitcoin and Ethereum prices at one point approached the extreme pain point, which investors thought was impossible to reach.”
Options data June 28
The 107K BTC options expire with a put ratio of 0.5, a Maxpain of $57,000, and a notional value of $6.6 billion.
The 1.04 million ETH options expire at a put rate of 0.59, a Maxpain of $3,100, and a notional value of $3.6 billion.
today is… pic.twitter.com/sYVyb3HJnC– GreeksLive (@GreeksLive) June 28, 2024
She added that despite the market volatility, implied volatility, a measure of future volatility from expiring contracts, did not show a significant rise, as BTC was below 50% IV for all major terms.
In addition to the large batch of Bitcoin options, there are about 1 million Ethereum options expiring today. These options have a call/put ratio of 0.59, a maximum pain point of $3,100, and a notional value of $3.6 billion. This pushed the total notional value of expiring crypto options to more than $10 billion.
Ethereum ETF news will be clearer early next month, noted Grex Live, which added that implied volatility “will be under strong downward pressure for a few days after today’s delivery.”
Crypto Market Impact
The total market cap has recovered slightly from its decline earlier this week to hover around the $2.4 trillion mark. However, sentiment remains bearish, and markets have been in a downtrend throughout June.
Bitcoin recovered to above $62,000 on June 28, but has fallen back to $61,500 at the time of writing. The asset appears to be consolidating at this level after falling below $60,000 on June 24.
Ethereum prices also recovered from a five-week low of $3,260 on Monday. The asset is back at $3,430 at the time of writing.
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