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Bitcoin and Ethereum options expiring: a $2 billion earthquake ready to shake the market

Fri 14 Jun 2024 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Event

The crypto market is bracing for potential volatility as Bitcoin and Ethereum options with a notional value of $2.06 billion are set to expire on Friday. This massive expiration could cause fluctuations in BTC and Ether prices.

Les options Bitcoin et Ethereum expirent

Bitcoin and Ethereum Options Surge of $2 Billion

The crypto traders are in a stir as a true wave of Bitcoin and Ethereum options worth over $2 billion are set to expire today.

According to data, approximately 20,276 Bitcoin options contracts representing $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, are also due to expire in a timing that is not coincidental.

The put/call ratios, indicators measuring the balance between outstanding buy and sell options, are at 0.49 for Bitcoin and 0.36 for Ethereum. These levels below 1 suggest a predominance of long positions over short positions, a potentially bullish signal to watch closely.

However, savvy investors will remain vigilant, as such massive options expirations generally translate into bouts of market volatility, at least in the short term.

Experts’ Views on the Major Event

Adam, a macro researcher at Greeks.Live, an options trading tool, shared his insightful analysis on the upcoming expiration. According to him, although the week is crucial for macroeconomics, the crypto market has recently experienced disappointing performances, with mainstream coins and altcoins dropping significantly.

He also noted that the implied volatilities of Bitcoin and Ethereum are currently at relatively low levels, offering buyers a high cost-effectiveness ratio. Adam suggested that traders prepare for the potential approval of an Ethereum Spot ETF by the end of the month, by planning in advance to buy options for the next month.

Bitcoin and Ethereum experienced price drops before this major expiration. BTC, which was trading at $71,643 on June 7, briefly fell to $66,254 on June 11 before rebounding to $69,945 on June 12.

Currently, Bitcoin is trading at $67,064, a 6% drop over the past week. Meanwhile, Ethereum has fallen by 7.8%, trading at $3,519.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.