This Friday, a significant number of Bitcoin options contracts, totaling around 107,000, are set to expire with a notional value of $6.6 billion. This end-of-month expiry event is larger than usual end-of-week expiries, potentially leading to market volatility. The put/call ratio for today’s BTC derivatives is 0.5, indicating that twice as many long (call) contracts are expiring as shorts (puts). The max pain point for these contracts is $57,000, approximately $4,000 lower than the current spot prices. Despite this, bulls continue to dominate the Bitcoin options markets, with over $340 million in open interest at higher strike prices such as $70K, $75K, and $80K. Deribit reports that the total open interest increases to $590 million at $90K and $770 million at the $100K strike price.
Ethereum Options Expiry Overview
In addition to the Bitcoin options, approximately a million Ethereum options are also expiring today. These Ethereum options have a put/call ratio of 0.59, a max pain point of $3,100, and a notional value of $3.6 billion. This brings the total crypto options expiration notional value to over $10 billion. The market awaits clarity on Ethereum ETF news early next month, with the potential for implied volatility to experience downward pressure post today’s delivery. As observed by Greeks Live, June proved to be a tough month for the crypto market, with a more pessimistic atmosphere prevailing as BTC and ETH prices approached the max pain points.
Market Trends and Sentiment Analysis
Total market capitalization has slightly recovered from a recent dip to hover around the $2.4 trillion mark. Despite this, sentiment remains bearish, with markets showing a downtrend through June. Bitcoin managed to reach over $62,000 on June 28 but has retraced to $61,500 at the time of this writing. The asset seems to be consolidating at this level after dipping below $60K on June 24. Similarly, Ethereum prices have rebounded from a five-week low of $3,260 on Monday, climbing back to $3,430. However, market observers suggest a prevailing air of caution given the ongoing market volatility and uncertainty.
The expiry of Bitcoin and Ethereum options contracts this week adds an element of uncertainty to the market, potentially contributing to increased volatility. As investors await further developments, it is important to monitor price movements and market sentiment closely to make informed decisions in the rapidly evolving cryptocurrency landscape.
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