TL;DR
- BTC and ETH Options Expiry: A massive $2.06 billion in Bitcoin and Ethereum options are set to expire, potentially causing significant market volatility.
- Bitcoin’s Critical Level: The maximum pain point for Bitcoin options is $68,500, which is a crucial level that could lead to substantial losses for option holders.
- Ethereum’s Outlook: Ethereum contracts worth $709.76 million are expiring, with a put-to-call ratio of 0.36 indicating a more optimistic sentiment among traders regarding market direction.
The cryptocurrency market is on high alert as a staggering $2.06 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are due to expire today. This event is expected to inject significant volatility into the market, with traders and investors closely monitoring the situation.
14 June options delivery data
20,000 BTC options expired with a Put Call Ratio of 0.49, a maximum pain point of $68,500 and a notional value of $1.35 billion.
200,000 ETH options expired with a Put Call Ratio of 0.36, a max pain of $3,600 and a notional value of $710 million.… pic.twitter.com/42ruZLLtqc— Greeks.live (@GreeksLive) June 14, 2024
Today marks the expiration of approximately 20,276 Bitcoin options contracts, carrying a notional value of $1.35 billion. The put-to-call ratio stands at 0.49, indicating a stronger inclination towards call options, which are bets on rising prices.
The maximum pain point for these Bitcoin options is pegged at $68,500, a critical price level that could trigger substantial losses for option holders.
Ethereum’s Expiry Examination
Alongside Bitcoin, 201,647 Ethereum contracts are scheduled to expire soon. These contracts have a total value of $709.76 million and a highest pain threshold of $3,600. Currently, the put-to-call ratio for Ethereum is 0.36, which suggests that the prevailing sentiment among traders leans more toward optimism in the market’s direction. Adam, a macro researcher at Greeks.Live, has highlighted the macroeconomic significance of this week’s expiries.
“The venture capital market is seeing favorable economic data, contrasting with the underperformance of the crypto market,” he said. Adam also pointed out the relatively low implied volatilities for BTC and ETH, which could present buying opportunities.
Market Movements
Ahead of the expiration, Bitcoin and Ethereum have experienced price fluctuations. Bitcoin’s value dipped from $71,643 to $66,254 before rebounding, while Ethereum saw a 7.8% decline. These movements underscore the market’s sensitivity to options expiries.
As the market braces for the impact of these expiries, traders are advised to stay vigilant. The aftermath of such events typically leads to market stabilization, but the path there can be tumultuous.
By keeping an eye on technical indicators and market sentiment, traders can navigate the expected volatility with greater confidence. This expiration event serves as a reminder of the intricate dynamics that drive the crypto market and the importance of strategic planning in trading activities.
