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The massive crypto options expiration on June 28 is set to shake up the Bitcoin and Ethereum markets
In just two days, major options on Bitcoin and Ethereum will expire on Deribit, a leading crypto derivatives exchange. This event, involving billions of dollars, could trigger substantial market volatility, creating a pivotal moment for cryptocurrency investors.
Here’s everything you should know.
Bitcoin Options Expiration: An Overview
On June 28th, Bitcoin options with a notional value of approximately $6.68 billion will expire. Total open interest is 108,285.40, with 71,685.90 call options and 36,599.50 put options, for 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, Bitcoin is priced at $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
Likewise, Ethereum Options worth about $3.5 billion will also expire on June 28. Total open interest for Ethereum options is 1,049,011.00, with 662,459.00 call options and 386,552.00 put options, for a put/call ratio of 0.58. The maximum price of 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, potentially leading to greater market volatility. Large quarterly expiries often result in unpredictable price movements due to increased trading volumes and position closures or rollovers.
“As we approach Friday’s big quarterly expiration, potentially impacted by ‘quadruple witching’ and related volatility in US stock markets, more than 25% of Derbit’s open interest will expire in-the-money, amounting to over $2.7 billion of dollars. The total notional size of the maturity is over $10 billion.
Derbit CEO Luuk Strijers
This indicates that a significant number of derivative contracts are expected to be profitable for their holders at maturity.
Are market changes coming?
With substantial Bitcoin and Ethereum options set to expire soon, cryptocurrency investors should prepare for potential cryptocurrency market volatility. The results of this event could have significant implications for future cryptocurrency price movements and trading strategies.
Read also: Ethereum Tokens vs. Layer 2: what is the best cryptocurrency investment?
Are you preparing for volatility or sticking to your crypto strategy?