Cryptocurrency Options Expiry: What You Need to Know
Approximately $2.25 billion worth of cryptocurrency options contracts will expire on June 7, including 18,000 Bitcoin options contracts with a notional value of $1.25 billion. Here’s what you need to know about today’s crypto options expiry event:
Bitcoin Options Expiry
- The put/call ratio for today’s Bitcoin contracts is 0.67, indicating that there are around a third more long contracts expiring than shorts.
- The max pain point for Bitcoin contracts is $70,000, slightly below the current spot price of just over $71,000.
- Deribit reports nearly a billion dollars in open interest at the $75,000 strike price, with bullish traders eyeing $80,000 and $100,000 strike prices.
- Market optimism is on the rise with interest rate cuts from the Bank of Canada and the European Central Bank, alongside positive performance driven by BTC and ETH ETFs.
- Bitcoin’s major term implied volatility is at around 50%, while Ethereum’s is about 55%, both decreasing to a reasonable level.
Ethereum Options Expiry
- Alongside the expiring BTC contracts, 260,000 Ethereum options contracts will expire, totaling $1 billion in notional value.
- Ethereum options have a put/call ratio of 0.64 and a max pain point of $3,650, slightly lower than the current spot price of $3,820.
- The market volatility for Bitcoin this month will likely be influenced by the Fed’s interest rate decision, while Ethereum’s market movements are driven by ETF approval news.
Market Update
Despite the cryptocurrency market capitalization remaining flat at $2.78 trillion at the time of writing, it has seen a 4% increase over the past seven days. Most digital assets have experienced minimal movements in the past 24 hours.
Hot Take: Stay Informed
Stay updated on the latest developments in the cryptocurrency options market to make informed decisions about your investments and trading strategies. Keep an eye on key events that could impact market volatility and asset prices.
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