The recent Bitcoin options expiry event involved around 20,000 options with a notional value of $1.35 billion. This event, however, was smaller compared to previous weeks, indicating a potential minimal market impact. Looking ahead, a larger Bitcoin options expiry event is scheduled for June 28, with $6.7 billion in notional value derivatives set to expire. The current put/call ratio for BTC contracts stands at 0.49, signifying that twice as many long (call) contracts are expiring as short (puts) contracts. The max pain point is identified at $68,500, slightly higher than the current spot prices.
Despite the recent market conditions, bulls continue to dominate BTC derivatives, with nearly $1 billion in open interest at the $100,000 strike price. The $75,000 and $80,000 strike prices have also attracted substantial open interest, amounting to $723 million and $807 million, respectively. This shows strong market confidence in these price levels. On the other hand, the market has been relatively quiet with fewer hot spots, as indicated by a decrease in short-term implied volatility for Bitcoin and Ethereum, falling below 50% and 60%, respectively.
In addition to Bitcoin options, 200,000 Ethereum options expired recently, with a put/call ratio of 0.36, a max pain point of $3,600, and a notional value of $710 million. Despite little change in total market capitalization, markets have been on a downward trend with a 7.5% decline over the past ten days. Bitcoin’s price has fluctuated around $67,000, after a drop from $69,500 earlier in the week. Market analysts attribute the decline to Bitcoin miner profit-taking. Ethereum has faced a more significant decrease this week, dropping 7.7% to a four-week low of $3,434 before rebounding to $3,515.
The recent Bitcoin and Ethereum options expiry events have highlighted market dynamics influenced by open interest, implied volatility, and price levels. While today’s expiry event had a minimal impact, the upcoming June 28 expiry with a higher notional value could lead to more significant market movements. Traders and investors should closely monitor these developments to navigate the evolving cryptocurrency market landscape effectively.