Could the Trading of $3 Billion Worth of Bitcoin Options Potentially Intensify the Struggles in the Crypto Market Today?
Tackling the Bitcoin Big Kahuna: Over $3 billion worth of Bitcoin options contracts are hitting the skillet this Friday, June 13th. Guess that $2,000 Margaritas will have to wait, eh?
This expiry shindig is just back-to-back with the one last week, so the party on the spot markets might be minimal. Don't let the "Tanking" headlines fool ya, they've already taken a 7% dive in the past 24 hours.
Catch the Options Action
This week's bundle of Bitcoin options has a put-to-call ratio of 0.95, meaning the longshots and short-sellers are all mixed up like a tossed salad. There's also a max pain point of an eye-popping $107,000, which is where most of the losses will get dished out come expiry.
As for the open interest (OI), also known as the # of BTC options contracts still unexpired, it's highest at strike prices between $110,000 and $140,000. Bullish speculators are all in, with more than $1.5 billion wagered at each price point, according to Deribit.
In a market report this week, crypto derivatives provider Greeks Live said the scene is divided, with salty bears talking smack while multiple traders have shifted to buying puts for protection. They claim there's some debate about the $120,000 price target, with some tradin' 'good ol' boy' bullish vibes, while others reckon it's not "allowed" (was that a wink, Greeks?). Here's a fun fact: they're also keeping a close eye on $90,000 as a possible retest level.
But wait, that's not all! There are around 250,000 Ethereum contracts also getting their expiry on, with a notional value of $687 million, a max pain point of $2,700, and a put-to-call ratio of 1.2. Got your calculator handy? That brings Friday's grand crypto options expiry notional value to a whopping $3.6 billion!
Reading the Crypto Tea Leaves
Total market capitalization has split like a freshman's group chat, dropping 7.4% to $3.34 trillion over the past 12 hours. More than $180 billion dip-sticks have abandoned the party.
Bitcoin has kicked us in the toes with a 4.3% drop to $103,000 during the Friday morning Asian trading session. Que sera sera, though. The asset ain't exactly a bucket of cold water—it's still above six figures and chillin' in its six-week rangebound channel. No need for the drama queens yet.
Ethereum has cooled off after its smokin' rally, drop-sliding a rug-pulling 10% in a fall below $2,500 on Friday. Let's hope it holds its ground, ya dig? That price level has been support in the past, so it must maintain or we could be lookin' at another Barnum & Bailey circus.
The altcoins? A sea of red, as expected. Big declines for Solana, Dogecoin, Cardano, Sui, Chainlink, and plenty more.
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- The upcoming Friday, June 13th, will see over $3 billion worth of Bitcoin options contracts expire, with a maximum pain point of an astonishing $107,000.
- As for Ethereum, approximately 250,000 contracts will also be expiring on the same day, totaling a notional value of $687 million and a max pain point of $2,700.
- In the finance world of crypto trading, there's a high interest in open Bitcoin options contracts, with the highest open interest being at strike prices between $110,000 and $140,000, representing more than $1.5 billion in wagers.
- The total market capitalization has dropped by 7.4% to $3.34 trillion, reflecting a significant exodus of more than $180 billion from the market, while Bitcoin, Ethereum, and numerous altcoins are experiencing a sea of red in their prices.
