The upcoming Bitcoin options expiry event on Friday will see around 107,000 contracts expire with a notional value of $6.6 billion. This end-of-month expiry is much larger than usual end-of-week expiries, potentially leading to increased market volatility. The put/call ratio for the current options stands at 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, which is $4,000 lower than the current spot prices. Despite this, bulls appear to be in charge of the Bitcoin options market, with open interest at higher strike prices of $70K, $75K, and $80K. As per Deribit, total open interest increases to $590 million at $90K and $770 million at the $100K strike price.
Alongside the significant Bitcoin options expiry, around a million Ethereum options are also set to expire. These 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 Ethereum market is awaiting clarity on ETF news early next month, with implied volatility expected to experience downward pressure in the coming days following the expiry.
The total market capitalization has seen a slight recovery from a recent dip to hover around the $2.4 trillion mark. However, overall sentiment remains bearish, with markets trending downwards throughout June. Bitcoin briefly surpassed $62,000 on June 28 before retreating to $61,500. The asset is currently consolidating at this level after dipping below $60K on June 24. Ethereum prices also experienced a recovery from a five-week low of $3,260, returning to $3,430 at the time of writing.
The upcoming expiry of Bitcoin and Ethereum options contracts presents an interesting dynamic for the crypto market. With significant notional values, put/call ratios, and max pain points to consider, investors and traders will likely be closely monitoring market movements post-expiry to gauge the impact on prices and volatility.
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