Markets
Cryptocurrency Market Awaits $1.85 Billion Options Expiration Today
Today, the cryptocurrency market is expecting nearly $1.85 billion worth of Bitcoin (BTC) and Ethereum (ETH) options to expire.
Market participants are closely monitoring these expirations, which could lead to an increase volatility and price fluctuations.
Macroeconomic Factors and Options Expiration: How They Shape Cryptocurrency Prices
According to data from Deribit, 23,832 Bitcoin contracts worth approximately $1.37 billion are scheduled to expire today. This tranche is larger than last week’s numberswhich were 18,339 contracts. These expiring contracts have a put-to-call ratio of 1.09, with a maximum pain point of $58,500.
Read more: An Introduction to Cryptocurrency Options Trading
Bitcoin options expiring. Source: Deribit
In the crypto options market, the maximum pain point represents the price level that inflicts the greatest financial discomfort on option holders. Meanwhile, the put-to-call ratio suggests a prevalence of call options over put options.
In addition to Bitcoin options, 156,792 Ethereum contracts will also expire today, holding a notional value of over $488.05 million. Ethereum’s put-to-call ratio is 0.38, with a maximum pain point of $3,100.
This week, the cryptocurrency market was influenced by broader economic factors. On July 11, the Bureau of Labor Statistics (BLS) released US Consumer Price Index (CPI) data, showing a 3% year-over-year (YoY) increase inflation rate for June. This number was lower than market expectations.
Bitcoin briefly hit $59,000 during the recent economic updates, while Ethereum was trading at $3,105, showing a slight increase. This positive development occurred despite market pressure from Significant Bitcoin sales by Germany and US governments. Adam, an analyst at crypto options tool Greeks.live, provided insights into the current sentiment in the crypto options market.
“The general [implied volatility] The IV level has recovered significantly. If you pick a higher IV, you can open a sell order. The large amount of funds delivered in the quarter will destroy the IV at any moment,” he said. he wrote.
Read more: 9 Best Crypto Options Trading Platforms
Historically, sharp price movements due to options expiration tend to be temporary, with markets stabilizing soon after. However, traders should remain cautious in analyzing technical indicators and market sentiment to effectively navigate this volatile period.
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