Another weekend has arrived, bringing another Bitcoin and Ethereum options expiration event as spot markets remain sideways.
About 23,400 Bitcoin options contracts will expire on Friday, July 10, with a notional value of about $1.4 billion. This event is smaller than usual expiry events, so there is unlikely to be any impact on the spot markets.
Cryptocurrency markets rose earlier in the week but have retreated since the escalation in military action in Iran and the Federal Reserve meeting on Wednesday. About $30 billion has left the space since Monday.
Bitcoin options expiration
This week’s pool of Bitcoin options contracts has a put/ask ratio of 0.97, meaning that sellers of long (buy) and short (sell) contracts are evenly matched. The maximum pain is around $62,000, which is slightly below current spot prices, so some will be out of the money at expiration.
Open interest (OI), or the value or number of Bitcoin options contracts that have not yet expired, is still higher at the $80,000 strike price on Deribit, with $1.1 billion, but short sellers still have $1 billion in OI at $60,000. Total BTC options OI across all exchanges rose slightly to $28.7 billion, according to Coinglass.
The current skewness profile reflects a “more normalized term structure” while maintaining a persistent downside bias in options pricing, He said Greek derivatives provider live this week.
“Compared to the severe front-end disruptions we saw earlier in June, risk pricing is now more evenly distributed across maturities, suggesting a less fragmented options market.”
This means that the options market overall reflects ongoing concern about Bitcoin falling more than it rising, although the fear is more evenly spread than before. In addition to today’s small batch of Bitcoin options, there are about 141,000 Ethereum contracts expiring, with a notional value of $237 million, a max pain of $1,700, and a call/sell ratio of 1.2.
The total ETH OI options across all exchanges is low at around $4.4 billion. This brings the total notional value of cryptocurrency options expiration to about $1.6 billion, which is a very small event.
Real time market forecast
Cryptocurrency markets rose slightly on Friday morning as total capital reached $2.25 trillion, but fell slightly during the week.
Bitcoin rose more than 2%, reaching an intraday high of $64,000 during Asian trading on Friday morning. There is stiff resistance just above $64,500, so it needs to be broken to push into the next resistance area around $66,000.
Ether prices made Marginal gains But it remains below the resistance point at $1,800. Altcoins are seeing small gains after a week of decline, with Zcash, Stellar, and Canton performing better.
this post Will Bitcoin Options Expiring Today Move Market $1.4 Billion? appeared first on CryptoPotato.
