Ethereum
Bitcoin and Ethereum options expire
Fri June 14, 2024 ▪ 3 min reading ▪ by Fenelon L.
The crypto market is bracing for potential volatility as Bitcoin and Ethereum options with a notional value of $2.06 billion are set to expire on Friday. This massive expiration could lead to price fluctuations in BTC and Ether.
Bitcoin and Ethereum Options Surge by $2 Billion
Crypto traders are abuzz as a veritable wave of Bitcoin and Ethereum options worth over $2 billion are set to expire today.
According to dataAbout 20,276 Bitcoin options contracts worth $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 $709.76 million, with a maximum strike price of $3,600, are also set to expire at a not-coincidental time.
The put/call ratios, indicators measuring the balance between outstanding call and sell options, are 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 watch closely.
However, savvy investors will remain vigilant, as such massive option expirations typically result in bouts of volatility in the markets, at least in the short term.
Expert opinions on this major event
Adam, macro researcher at Greeks.Live, an options trading tool, shared his insightful analysis on the upcoming expiration. According to him, although the week is crucial for the macroeconomy, the crypto market has seen disappointing performance recently, with traditional coins and altcoins falling significantly.
He also noted that the implied volatilities of Bitcoin and Ethereum are currently at relatively low levels, providing buyers with high cost efficiency. Adam suggested that traders prepare for the possible approval of a Ethereum Spot ETF by the end of the month, planning in advance to purchase options for the following month.
Bitcoin and Ethereum saw price drops ahead of this major expiration. BTC, which was trading at $71,643 on June 7, briefly fell to $66,254 on June 11 before rebounding to $69,945 on June 12.
Currently, Bitcoin is trading at $67,064, a drop of 6% over the past week. Meanwhile, Ethereum fell 7.8%, trading at $3,519.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe 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.