Bitcoin
Bitcoin and Ethereum options expire
Friday, June 14, 2024 ▪ 3 min read ▪ by Fenelon L.
The crypto market is bracing for potential volatility as Bitcoin and Ethereum options with a notional value of $2.06 billion will expire on Friday. This massive expiration could cause BTC and Ether prices to fluctuate.
Bitcoin and Ethereum Options Rise by $2 Billion
Crypto traders are in a tizzy as a veritable wave of Bitcoin and Ethereum options worth over $2 billion are set to expire today.
According to dataapproximately 20,276 Bitcoin options contracts representing $1.35 billion, with a very high maximum strike price of $68,500, are about to expire.
Simultaneously, no less than 201,647 Ethereum Contracts worth US$709.76 million, with a maximum exercise price of US$3,600, will also expire at a time that is no coincidence.
The put/call ratios, indicators that measure the balance between call and put options in circulation, are at 0.49 for Bitcoin and 0.36 for Ethereum. These levels below 1 suggest a predominance of long positions over short positions, a potentially bullish signal to be watched closely.
However, savvy investors will remain vigilant, as such massive option expiries often translate into episodes of market volatility, at least in the short term.
Experts’ opinions on the big event
Adam, macro researcher at Greeks.Live, an options trading tool, shared his insightful analysis on the upcoming expiry. According to him, although the week is crucial for the macroeconomy, the crypto market has recently seen disappointing performances, with conventional coins and altcoins falling significantly.
He also noted that Bitcoin and Ethereum’s implied volatilities are currently at relatively low levels, offering buyers high value for money. Adam suggested that traders prepare for the possible approval of a Ethereum Spot ETF until the end of the month, planning in advance to purchase options for the next month.
Bitcoin and Ethereum have experienced price drops ahead of this big expiry. BTC, which traded at $71,643 on June 7, briefly fell to $66,254 on June 11 before recovering to $69,945 on June 12.
Bitcoin is currently trading at $67,064, a 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 am exploring blockchain and cryptocurrency methods and sharing them with the community. My joy is living in a world where private life and financial freedom are guarantees for everyone, and I am convinced that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.