- Over $2.2 billion in Bitcoin and ETH options set to expire today.
- Bitcoin whales hold over 40% of BTC supply due to recent accumulation.
Since over $2.2 billion in Ethereum (ETH) and Bitcoin (BTC) options are due to expire today, the cryptocurrency market is on high alert. Depending on how dealers respond, this big event can cause brief market turmoil.
Major Options Expiry ImpactÂ
It is about time for the $984 million Ethereum options contracts and the $1.24 billion Bitcoin options contracts to expire. This massive expiration can set off a fresh round of selling pressure or purchasing pressure.
Deribit data shows that there is a greater frequency of purchase options (calls) than sales options (puts), with 17,609 Bitcoin contracts scheduled to expire with a put-to-call ratio of 0.67.
Tomorrow approximately $2.2 billion in #crypto #options are set to expire
BTC Options Notional Value: $1.22 billion
Put/Call Ratio: 0.66
Max Pain Point: $69,500ETH Options Notional Value: $0.98 billion
Put/Call Ratio: 0.65
Max Pain Point: $3,650Weekly Expiry: 8:00 AM… pic.twitter.com/fIoqrFK6VZ
— Deribit (@DeribitExchange) June 6, 2024
Max Pain Point of Bitcoin
The price point at which the majority of holders of BTC experience financial losses is known as the maximum pain point, and it is approximately $7,000. As of right now, Bitcoin is trading at about $70,698.5, down 0.66% in the latest day but up 3.13% over the previous seven days.
Even with the options expiring soon, Greeks.Live analysts continue to see Bitcoin and Ethereum prices rising.
They emphasize the tenacity of the cryptocurrency market, especially Bitcoin, in light of the recent interest rate reductions by the European Central Bank (ECB) and the Bank of Canada.
With the BOC and the ECB announcing interest rate cuts, the crypto market, as represented by BTC, has clearly turned stronger, with prices gradually climbing. Tomorrow's key macro data —— US Non-Farm Payrolls and Unemployment Rate have also become more interesting, with Fed rate… pic.twitter.com/gwLBRZaG6E
— Greeks.live (@GreeksLive) June 6, 2024
Macroeconomic InfluencesÂ
Trader focus points now include macroeconomic statistics such as the unemployment rate and US non-farm payrolls. Short-term implied volatility (IV) has risen as macro traders focus on predictions of a Fed rate decrease.
The weekly at-the-money (ATM) IV is once again above 50%, suggesting more bullish pressures betting on today’s data to surpass projections.
There will be 259,641 contracts expiring on the Ethereum market with a put-to-call ratio of 0.64. A pain point for Ethereum is $3,650. At the moment, Ether (ETH) is worth about $3,795.21, having dropped 1.93% in the last 24 hours.
Beside that, ETHNews notes that Bitcoin whales have been aggressively accumulating lately, owning more than 40% of the BTC supply.