Markets
Massive Crypto Options Expiry on June 28 Set to Shake Bitcoin and Ethereum Markets
In just two days, major Bitcoin and Ethereum options are set to expire on Deribit, a leading crypto derivatives exchange. This event, involving billions of dollars, could trigger significant market volatility, creating a crucial 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 positions stand at 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, the price of Bitcoin is $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
In the same way, 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, resulting in a put/call ratio of 0.58. The maximum price for ETH options is $3,100.00.
Currently, Ethereum is 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 cumulative open interest of more than $23 billion, which could lead to increased market volatility. Large quarterly expirations often result in unpredictable price movements due to higher trading volumes and closing or rolling over of positions.
“As we approach Friday’s important quarterly deadline, potentially influenced by ‘quadruple witchcraft’ and resulting volatility in US equity markets, more than 25% of open interest on Derbit is expected to expire in-the-money, which equates to more than $2.7 billion. The total notional size of expiration is over $10 billion.
Luuk Strijers, CEO of Derbit
This indicates that a significant number of derivative contracts are expected to be profitable for their holders at expiration.
Are market changes coming?
With major 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 on future price movements and trading strategies of cryptocurrencies.
Read also: Ethereum vs Layer 2 Tokens: Which is the Better Crypto Investment?
Are you preparing for volatility or sticking to your crypto strategy?