Markets
Will markets move as $2.2 billion in crypto options expires?
Approximately $2.25 billion in notional value cryptocurrency options contracts will expire on June 7. These include approximately 18,000 Bitcoin options contracts, with a notional value of $1.25 billion.
Today’s crypto options expiration event is much smaller than The past few weeks The contract expires at the end of the month, so the impact on spot markets is likely to be minimal.
Bitcoin Options Expiration
Today’s Bitcoin contracts have a put/call ratio of 0.67, with about a third more long contracts expiring than short ones. Additionally, the maximum distress point, or the price at which most losses will be made, is $70,000. This is currently slightly lower than spot prices, which are just over $71,000 as of this writing.
Second for Deribit, there is nearly a billion dollars in open interest (OI) at the $75,000 strike price. OI refers to the number or value of open contracts that have yet to be settled. Bullish derivatives traders are also targeting strike prices of $80,000 and $100,000, with OI at $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 performing better led by both BTC and ETH ETFs, there is a more optimistic market atmosphere as macro and news diverge significantly,” commented the crypto derivatives tools provider. The Greeks live.
He added that Bitcoin’s leading term implied volatility is around 50%, while Ethereum’s is around 55%, “both down to a reasonable level.” IV is a measure of expected future volatility derived from expiring contracts.
Ethereum Options Expiry
In addition to the BTC contracts expiring today, there are 260,000 Ethereum options expiring with a notional value of $1 billion. These have a put/call ratio of 0.64 and a high critical 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 highly correlated with macro news on Fed interest tariff decision while Ethereum is driven by the news of ETF approvals.
At the time of writing, the cryptocurrency market capitalization was stable at $2.78 trillion, but has increased by 4% over the past seven days. There has been very little movement for most digital assets over the past 24 hours.