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Will Today’s Bitcoin Options Expiration Cause Markets to Go Down?
There are approximately 20,000 Bitcoin options expiring with a notional value of $1.35 billion. However, today’s expiration event is much smaller than in previous weeks, so the impact on the market is likely to be minimal.
However, a major Bitcoin options expiration event will occur on June 28, with $6.7 billion of notional value derivatives expiring.
Bitcoin Options Expiration
Today’s BTC contracts have a put/call ratio of 0.49, meaning twice as many long (call) contracts expire as short (put) contracts.
The high tipping point is $68,500, slightly higher than current spot prices. This is the level at which most losses will be made.
Bulls continue to dominate BTC derivatives with nearly $1 billion in open interest at the $100,000 strike price. second in Deribit. Strike prices of $75,000 and $80,000 also attracted many IOs, with $723 million and $807 million respectively.
Crypto derivatives tools provider Greeks Live commented that despite the large macroeconomic data week in the US, “the crypto market underperformed, traditional coins as a whole tumbled, and altcoins fell even further.”
“There are fewer hot spots on the market recently, and the market is relatively calm.”
He added that short-term implied volatility for Bitcoin and Ethereum has fallen below 50% and 60%, respectively. However, Ethereum ETF news later this month could impact market sentiment and volatility.
In addition to today’s batch of Bitcoin options, 200,000 Ethereum options expired with a put/call of 0.36, a high critical point of $3,600, and a notional value of $710 million.
Cryptocurrency market outlook
There was little change in the total market capitalization over the past 24 hours, which remained at $2.57 trillion.
However, in the last ten days the markets have recorded a decline of 7.5%.
Bitcoin was hovering around $67,000 in early trading on Friday, following a decline from around $69,500 earlier this week. Analysts pointed out that profit-taking by Bitcoin miners contributed to the decline.
Chart guru Peter Brandt highlighted support levels in case markets fall further.
Ethereum took a hit this week, falling 7.7% to a four-week low of $3,434 on June 13 before recovering slightly to $3,515 as of this writing.