The upcoming Bitcoin options contracts expiry on July 26 is anticipated to be significant, with around 61,200 contracts valued at $4.26 billion. This particular expiry event is larger than usual due to being at the end of the month. Despite the recent launch of spot Ethereum ETFs in the United States, the spot markets have shown a loss of momentum this week.
The put/call ratio for Bitcoin options contracts is at 0.61, indicating that there are nearly twice as many long contracts expiring as short contracts. Notably, open interest at higher strike prices appears to favor the bulls, with $942 million at $70,000 and a substantial $1.3 billion at a $100,000 strike price. However, on the put side, there is approximately $500 million in open interest at the $60,000 strike price.
In addition to the Bitcoin contracts, there are approximately 500,000 Ethereum options contracts expiring on the same date with a notional value of $1.76 billion. The put/call ratio for Ethereum contracts is at 0.46, indicating that there are more than twice as many long contracts expiring compared to short contracts. The highest open interest is at the $4,000 strike price, totaling over $520 million.
The total notional value of both Bitcoin and Ethereum options contracts combined comes out to around $6 billion, making it one of the largest expiry events of the year in the crypto market. Despite the launch of Ethereum ETFs, there have been outflows in recent days, with $152 million exiting the products, led by a significant $346 million exodus from Grayscale.
Spot markets have witnessed a decline of approximately $120 billion this week, with Bitcoin retracing to $64,000 on July 25. While there was a recovery from a recent low of $54,000, Bitcoin struggled to break through the $68,000 resistance level earlier in the week. Ethereum has endured a more challenging time, with an 11% drop following the ETFs launch, dropping to $3,100 on July 25 before bouncing back to $3,250 during Asian trading on Friday.
The expiration of Bitcoin and Ethereum options contracts is poised to have a significant impact on the crypto market. The market sentiment and price movements following the expiry will be closely watched by traders and investors alike as they navigate the changing landscape of digital assets.
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