The crypto market is bracing for a potential storm of volatility as Bitcoin and Ethereum options with a notional value of $2.06 billion expire on Friday. This huge expiration could cause jolts in the prices of BTC and Ether.
$2 Billion Bitcoin and Ethereum Options Tidal Wave
Crypto traders are in an uproar as a veritable flood of Bitcoin and Ethereum options worth more than $2 billion expire today.
According to dataapproximately 20,276 Bitcoin options contracts worth $1.35 billion, with a very high maximum strike price of $68,500, are set to expire.
Simultaneously, no less than 201,647 Ethereum contracts worth $709.76 million, with a maximum strike price of $3,600, also expire in a timing that owes nothing to chance.
The put/call ratios, indicators measuring the balance between call and sell options in circulation, stand at 0.49 for Bitcoin and 0.36 for Ethereum. These levels below 1 suggest a preponderance of long positions over short positions, a potentially bullish signal to watch closely.
However, savvy investors will be on the lookout as such massive options expirations typically result in a bout of volatility in the markets, at least in the short term.
Expert perspectives on the major event
Adam, a macro researcher at Greeks.Live, an options trading tool, shared his insightful analysis on the impending expiration. According to him, although the week is crucial for the macroeconomy, the crypto market has seen disappointing performance recently, with mainstream coins and altcoins falling significantly.
He also highlighted that the implied volatilities of Bitcoin and Ethereum are currently at relatively low levels, providing buyers with high cost efficiency. Adam suggested traders prepare for the possible approval of a Spot Ethereum ETF by the end of the month, by planning ahead to purchase options for next month.
Bitcoin and Ethereum saw price declines ahead of this major expiration. BTC, which was trading at $71,643 on June 7, briefly fell to $66,254 on June 11 before recovering to $69,945 on June 12.
Currently, Bitcoin is trading at $67,064, down 6% over the past week. Meanwhile, Ethereum fell 7.8%, trading at $3,519.
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