Bitcoin and Ethereum Options Worth $2B Expire Today, Brace for Market Volatility

Approximately 20276 Bitcoin options contracts are set to expire today. These contracts have a notional value of $1.35 billion, with a put-to-call ratio of 0.49.

A large batch of Bitcoin (BTC) and Ethereum (ETH) options will expire today, setting the stage for potential market volatility. Here's a closer look at the expiring options and their possible impact on the market dynamics.

About 20,276 Bitcoin options contracts are expiring today, carrying a notional value of $1.35 billion. The put-to-call ratio for these options is 0.49, indicating a higher demand for purchase options (calls) than sales options (puts) in the expiring batch.

These expiring Bitcoin options have a maximum pain point at $68,500, highlighting the price level at which the majority of option holders will face the maximum financial losses. This price point serves as a critical market pivot for traders.

At the same time, 201,647 Ethereum contracts will expire. Deribit's data shows that these contracts have a notional value of $709.76 million, with a maximum pain point of $3,600. The data also reveals a put-to-call ratio of 0.36 for these options.

Adam, a macro researcher at options trading tool Greeks.Live, shared his perspectives on today's expiring Bitcoin and Ethereum contracts, highlighting the week's macro importance.

“This week is a big week for macroeconomics. The economic data is relatively favorable to the venture capital market. The US stock market has risen significantly, but the crypto market has performed poorly. Mainstream coins have fallen overall, and altcoins have fallen even more. There are fewer hot spots in the market recently, and the market is relatively quiet,” he noted.

He further elaborated on the volatility and potential strategic moves for traders.

“Currently, the major medium- and short-term implied volatilities of BTC are all below 50%, and the major medium- and short-term [implied volatilities] IVs of ETH are all below 60%. Both have fallen to relatively low levels, providing buyers with a high cost-effectiveness ratio. There should be new news on the approval of [spot] ETH [exchange-traded fund] ETF at the end of this month, so you can plan for next month's call options in advance,” Adam suggested.

Bitcoin and Ethereum have experienced price declines leading up to this expiration. Bitcoin, which was trading at $71,643 on June 7, briefly dropped to $66,254 on June 11 before recovering to $69,945 on June 12.

Currently, Bitcoin is trading at $67,064, showing a 6% decrease over the past week. On the other hand, Ethereum is trading at $3,519, marking a 7.8% decrease.

While options expirations can lead to temporary market disruptions, they typically stabilize afterward. Traders should closely monitor technical indicators and market sentiment to navigate the anticipated volatility effectively.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-ethereum-options-worth-b-expire-brace-market-volatility.html

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