Ethereum
$1.54 Billion in Crypto Options Expires Due to Whale Selloff
Today, approximately $1.54 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire, creating significant anticipation in the cryptocurrency market.
Crypto options expiration often results in noticeable price fluctuations volatilitywhich prompts traders and investors to closely monitor the development of the current situation.
Analysts predict stabilization after options expiration in cryptocurrency market
Expired Bitcoin options have a notional value of $1.04 billion, with 18,339 contracts set to expire. These contracts have a put/call ratio of 0.71 and a maximum pain point of $62,000.
Learn more: Introduction to Crypto Options Trading
Bitcoin options expired. Source: Derivative
The maximum pain point in options trading represents the price level that causes the greatest financial pain to option holders. Additionally, the put/call ratio suggests a prevalence of call options over put options.
Ethereum has 162,782 expiring contracts with a notional value of $501.12 million. These contracts have a put/call ratio of 0.37 and a maximum pain point of $3,350. Greeks.Live analysts noted that recent market sell-offs have led to heavy losses for the cryptocurrency markets, with BTC falling to $57,000 and ETH to $3,100.
In addition, the data shows that BTC’s short-term implied volatility (IV) increased by 10%. At the same time, Deribit’s implied volatility index (DVOL) increased by 3%, and ETH-related metrics increased slightly less than BTC. The skewed values indicate bearish market sentiment.
“BTC block put volume is clearly up, trade distribution is more complex, 58k put from July 12 is the largest. Looking at options data, whales are not too worried about potential downside risk at the moment and are mostly adjusting their positions for last week’s quarterly delivery, especially for ETH, where whales are displaying low volatility expectations,” Greeks.Live analysts said said.
Both Bitcoin and Ethereum Prices Bitcoin prices have dropped significantly this week. On July 4, BTC dropped from the $60,000 level to $56,964 today. At the time of writing, Bitcoin is trading at $57,037. Similarly, Ethereum has dropped from $3,304 to $3,060 over the same period. ETH is now valued at $3,083, down 3.4% in the last 24 hours.
Industry experts attribute the recent drop in BTC and ETH prices to increased long-term whale salesincluding governments. BeInCrypto reported that on-chain data yesterday shows, German government crypto wallet transferred 3,000 BTCworth approximately $174.3 million, to multiple destinations. These include major cryptocurrency exchanges such as Bitstamp, Kraken and Coinbase.
Learn more: 9 Best Crypto Options Trading Platforms
Although options expirations can result temporary market disruptionsthey usually lead to stabilization. Recent analyst analyses highlight historical trends that traders can consider when developing their position strategies. Ultimately, traders must remain vigilant, analyzing technical indicators and market sentiment to effectively manage anticipated volatility.
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