Markets
Will markets change as $2.2 billion worth of crypto options expires?
About $2.25 billion in notional value cryptocurrency options contracts will expire on June 7. Around 18,000 Bitcoin options contracts are among them, and these have a notional value of $1.25 billion.
Today’s crypto options expiration event is much smaller than last weeks contract expiry at the end of the month, so the impact on spot markets will likely be minimal.
Bitcoin Options Expiration
The current batch of Bitcoin contracts has a put/call ratio of 0.67, with about a third more long contracts expiring than short contracts. Furthermore, the maximum pain point, or the price at which most losses will occur, is $70,000. This is currently slightly lower than spot prices, which are just over $71,000 at the time of writing.
According to For Deribit, there is almost a billion dollars in open interest (OI) at the strike price of $75,000. OI refers to the number or value of open contracts that have not yet been settled. Bullish derivatives traders also target strike prices of $80,000 and $100,000, with OI of $890 million and $969 million, respectively.
With the Bank of Canada and the European Central Bank initiating interest rate cuts this week and the market showing better performance driven by BTC and ETH ETFs, there is a “more optimistic market atmosphere as macro and news diverge significantly,” he commented. the provider of live Greek crypto derivatives tools.
He added that Bitcoin’s main implied volatility is around 50%, and Ethereum’s is around 55%, “both of which have fallen to a reasonable level.” IV is a measure of expected future volatility derived from expiring contracts.
June 7th Options Data
18,000 BTC options expired with a Put Call ratio of 0.67, a Maxpain point of $70,000, and a notional value of $1.25 billion.
260,000 ETH options expired with a Put Call Ratio of 0.64, Maxpain point of $3,650 and notional value of $1 billion.
With BOC and… pic.twitter.com/tsSENca8Pu-Greeks.live (@GreeksLive) June 7, 2024
Ethereum Options Expiration
In addition to the BTC contracts expiring today, there are 260,000 expiring Ethereum options with a notional value of $1 billion. They have a put/call ratio of 0.64 and a high pain point of $3,650, slightly lower than the current spot price of $3,820.
Greeks Live noted that this month’s Bitcoin market volatility will be strongly correlated with macro news of interest to the Fed. rate decision while Ethereum is driven by news from the ETF Approvals.
The crypto market cap was flat on the day at $2.78 trillion at the time of writing, but has gained 4% over the past seven days. There has been very little movement for most digital assets in the last 24 hours.
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