The Bitcoin options market is currently experiencing an expiry event involving around 20,000 options with a notional value of $1.35 billion. Despite the significant value of these options, the impact on the market is expected to be minimal due to the relatively smaller size of today’s expiry event. However, traders are closely watching a future expiry event on June 28, which will involve $6.7 billion in notional value derivatives.
Analysts have noted that today’s BTC contracts have a put/call ratio of 0.49, indicating that there are twice as many long (call) contracts expiring as shorts (puts). The max pain point for this expiry event is $68,500, slightly above the current spot prices. This level represents the price at which the most losses are likely to be incurred by traders. Despite this, bulls continue to dominate the BTC derivatives market, with nearly $1 billion in open interest at the $100,000 strike price.
Crypto derivatives tooling provider Greeks Live observed that the crypto market has been relatively subdued recently, with fewer hot spots and decreased volatility. Short-term implied volatility for Bitcoin and Ethereum has fallen below 50% and 60% respectively. However, analysts warn that the upcoming Ethereum ETF news later this month could potentially impact market sentiment and volatility.
In addition to the Bitcoin options expiry, there were also 200,000 Ethereum options expiring with a put/call ratio of 0.36 and a notional value of $710 million. The max pain point for Ethereum options is $3,600. Despite little change in the total market capitalization over the past 24 hours, the markets have seen a 7.5% decline over the past ten days. Bitcoin has experienced a minor decline from around $69,500 to $67,000, with analysts pointing to Bitcoin miner profit taking as a contributing factor. Ethereum, on the other hand, fell to a four-week low of $3,434 before recovering slightly to $3,515.
Overall, the impact of Bitcoin options expiry on market dynamics remains a topic of interest for traders and analysts. While today’s expiry event is relatively small, attention is turning towards the upcoming expiry on June 28, which could have a more significant influence on market trends. As the crypto market continues to evolve, monitoring options expiry events and market sentiment will be crucial for navigating the volatile landscape of cryptocurrency trading.