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Massive Crypto Options Expiry on June 28th Set to Shake Bitcoin and Ethereum Markets

In two days, significant Bitcoin and Ethereum options are set to expire on Deribit, a leading crypto derivatives exchange. This event, involving billions of dollars, could trigger substantial market volatility, creating a crucial moment for cryptocurrency investors.

Read on to get more insights about the event!

Bitcoin Options Expiry: An Overview 

On June 28, Bitcoin options with a notional value of approximately $6.68 billion will expire. The total open interest stands at 108,285.40, with 71,685.90 call options and 36,599.50 put options, resulting in a put/call ratio of 0.51. The max pain price, or the price at which the largest 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 Expiry: An Analysis 

Similarly, Ethereum options worth around $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 call options and 386,552.00 put options, yielding a put/call ratio of 0.58. The max pain price of ETH options is $3,100.00. 

Presently,  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.

Anticipated Crypto Market Impact Explained 

The impending expiry represents over 40% of the current cumulative open interest of over $23 billion, potentially leading to increased market volatility. Large quarterly expires often result in unpredictable price movements due to higher trading volumes and the closing or rollover of positions.

According to Derbit’s CEO, Luuk Strijers, “ As we approach Friday’s large quarterly expiry, potentially influenced by ‘quadruple witching’ and related volatility in U.S. stock markets, over 25% of Derbit open interest is set to expire in-the-money, equating to over $2.7 billion. The total notional size of the expiry is over $10 billion.” This indicates that a significant number of derivative contracts are expected to be profitable for their holders at expiration.

In conclusion, with substantial Bitcoin and Ethereum options set to expire soon, cryptocurrency investors should brace for potential volatility in the crypto market. The outcomes of this event could have significant implications for further price movements and crypto trading strategies.

Stay tuned to Coinpedia for every update in the Crypto Options landscape. 

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