Bitcoin
Massive Crypto Options Expiration on June 28th Set to Shake Bitcoin and Ethereum Markets
In just two days, significant Bitcoin and Ethereum options are set to expire on Deribit, a leading crypto derivatives exchange. This event, involving billions of dollars, could trigger substantial market volatility, creating a pivotal moment for cryptocurrency investors.
Here’s everything you need to know.
Bitcoin Options Expiration: An Overview
On June 28, Bitcoin options with a notional value of approximately $6.68 billion will expire. Total open interest is 108,285.40, with 71,685.90 calls and 36,599.50 puts, resulting in a put/call ratio of 0.51. The maximum price, or the price at which the greatest number of options contracts will expire worthless, is $57,000.00.
Currently, Bitcoin is priced at $61,232.54, with a 30-day change of -10.7%, a 7-day change of -6.3%, and a 24-hour change of -0.1%. Its 24-hour trading volume is $27,459,333,628.
Ethereum Options Expiration: An Analysis
Similarly, Ethereum options worth about $3.5 billion will also expire on June 28. The total open interest for Ethereum options is 1,049,011.00, with 662,459.00 calls and 386,552.00 puts, producing a put/call ratio of 0.58. The maximum price for ETH options is $3,100.00.
Ethereum is currently priced at $3,369.83, with a 30-day change of -13.7%, a 7-day change of -4.8%, and a 24-hour change of -0.1%. Its 24-hour trading volume is $11,635,447,897.
Market volatility: what to expect
The impending expiration represents more than 40% of the current accumulated open interest of more than $23 billion, potentially leading to increased market volatility. Large quarterly expiries often result in unpredictable price movements due to higher trading volumes and the closing or rolling of positions.
“As we approach Friday’s big quarterly expiration, potentially influenced by ‘quadruple witching’ and related volatility in US equity markets, more than 25% of Derbit’s open interest is expected to expire in-the-money , equivalent to more than US$2.7 billion. The total notional size of the maturity is over $10 billion.”
Derbit CEO Luuk Strijers
This indicates that a significant number of derivative contracts are expected to be profitable for their holders at maturity.
Are market changes coming?
With substantial Bitcoin and Ethereum options set to expire soon, cryptocurrency investors should prepare for potential volatility in the crypto market. The results of this event could have significant implications for future price movements and crypto trading strategies.
Read too: Ethereum vs. Ethereum Tokens Layer 2: What is the best investment in crypto?
Are you preparing for volatility or sticking to your crypto strategy?