Bitcoin Options Expiry Event Overview 📉
This Friday, over 107,000 Bitcoin options contracts are set to expire, with a total value of $6.6 billion. This month-end expiration event is larger than the typical week-end expiries and may lead to increased market volatility. Here’s a breakdown of the key points:
- Put/Call Ratio: The current put/call ratio stands at 0.5, indicating that there are twice as many long (call) contracts expiring as short (put) contracts.
- Max Pain Point: The price level at which most losses are expected to occur is $57,000, which is approximately $4,000 below the current spot prices.
- Open Interest: Bulls continue to dominate the Bitcoin options market, with over $340 million in open interest at higher strike prices of $70K, $75K, and $80K.
Bitcoin Options Market Insights 📊
According to data from Deribit, the total open interest in Bitcoin options increases significantly at key strike prices:
- $590 million at $90K
- $770 million at $100K
Greeks Live, a provider of crypto derivatives analytics, noted that June was a challenging month for the market, with both Bitcoin and Ethereum prices approaching the max pain point, surprising many investors. Despite market volatility, the implied volatility for BTC remained below 50% for major terms.
Impact on the Crypto Market 📈
While the total market capitalization has slightly recovered to around $2.4 trillion after a recent dip, sentiment remains bearish, and the market has been on a downward trend throughout June. Key observations include:
- Bitcoin Price: After reaching $62,000 on June 28, Bitcoin has retraced to $61,500 and seems to be consolidating at this level.
- Ethereum Price: Ethereum prices have also bounced back from a five-week low of $3,260 to $3,430 at the time of writing.
Hot Take: Stay Informed and Stay Calm 🚀
As the crypto market braces for a significant options expiry event, it’s crucial to stay informed, monitor price movements, and avoid making impulsive decisions. By keeping a close eye on market dynamics and potential impact, you can navigate through periods of increased volatility with confidence. Remember, volatility presents opportunities for those who are prepared and patient.
Sources:
1. Deribit Options Data
2. Greeks Live Twitter
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