Markets

Bitcoin and Ethereum options expire

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3pm ▪ 3 minute read ▪ by Fenelon L.

The cryptocurrency market is bracing for potential volatility as Bitcoin and Ethereum options with a notional value of $2.06 billion expire on Friday. This massive expiration could cause fluctuations in the prices of BTC and Ether.

Bitcoin and Ethereum options rise by $2 billion

Cryptocurrency traders are in an uproar as a veritable wave of Bitcoin and Ethereum options worth more than $2 billion are set to expire today.

Second dataapproximately 20,276 Bitcoin options contracts worth $1.35 billion, with a very high maximum strike price of $68,500, will expire.

At the same time, as many as 201,647 Ethereum Contracts These securities, valued at $709.76 million, with a maximum exercise price of $3,600, will also expire at a non-random timing.

The put/call ratios, indicators that measure the balance between the buy and sell options in circulation, are equal to 0.49 for Bitcoin and 0.36 for Ethereum. These levels below 1 suggest a predominance of long positions over short ones, a potentially bullish signal to watch carefully.

However, savvy investors will remain vigilant, as such massive options expirations generally result in periods of market volatility, at least in the short term.

Expert opinions on the big event

Adam, a macro researcher at Greeks.Live, an options trading tool, shared his in-depth analysis on the upcoming expiration. According to him, although the week is crucial for the macroeconomy, the cryptocurrency market has recently recorded disappointing performances, with traditional coins and altcoins declining significantly.

He also noted that implied volatilities of Bitcoin and Ethereum are currently at relatively low levels, offering buyers high cost-effectiveness. Adam suggested that traders prepare for the potential approval of a Spot ETF on Ethereum by the end of the month, planning in advance the purchase of options for the following month.

Bitcoin and Ethereum suffered a price decline ahead of this important deadline. BTC, which was trading at $71,643 on June 7, briefly fell to $66,254 on June 11 before rebounding to $69,945 on June 12.

Currently, Bitcoin is trading at $67,064, at 6% drop. during the past week. Meanwhile, Ethereum fell 7.8% to trade at $3,519.

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Fenelon L.

Passionate about Bitcoin, I want to explore the meanings of blockchain and cryptocurrencies and participate in my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.



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