The cryptocurrency market is poised for significant movement as nearly $3 billion of Bitcoin and Ethereum options expire today. With key contracts and maximum trouble spots set, how will these expiring options affect market volatility?
Bitcoin and Ethereum options expire!
According to Deribit data, around $2.34 billion worth of Bitcoin options will expire today. The maximum pain point for these options is at $66,000 with a put/call ratio of 0.58. This expiration includes 36,732 contracts, significantly less than last week’s 61,320 contracts.
Additionally, Ethereum is seeing 183,756 contracts expire with a notional value of $577.2 million. The maximum pain point for these contracts is $3,300, with a put/call ratio of 0.55. The maximum pain point in the crypto options market represents the price level that causes the most financial inconvenience to option holders. At the same time, the put/call ratio shows that call options are more common than put options.
Cryptocurrency market volatility falls
Crypto options trading tool Greeks.live provides some insight into today’s options expiry. Since the monthly delivery in July, the Dvol Index has recorded a decline of around 15% from 62% to 48%, indicating a significant drop in market volatility. Current implied volatility (IV) levels are among the lowest this year with only three weeks below the current level.
Greeks.live analysts emphasize that market volatility has decreased as major events such as the Bitcoin 2024 Conference and the FOMC meetings took place smoothly. However, Adam from Greeks.live notes that there are currently no “hot spots” in the market and Ethereum exchange-traded funds (ETFs) will have to wait for stable positive inflows.
BTC liquidations start before cryptocurrency options expiry
As you have been following on Kriptokoin.com, Bitcoin experienced strong volatility in the last 24 hours, dipping below $62,000 before recovering. A total of $2.5 billion in leveraged long positions were liquidated as the BTC price fell below $63,000. Popular crypto analyst Ali Martinez explains that if the BTC price manages to rise to $70,440, bears will recoup $2.4 billion in short liquidations.
On the other hand, Bitcoin whales are once again moving in to buy the dips. According to data from SpotonChain, a new whale with the wallet address “bc1qh” withdrew 4,600 BTC worth $291 million from Bitfinex at $63,209.
Genesis Trading’s ETH transfers
In a notable development in the cryptocurrency market, Genesis Trading moved a significant amount of Ethereum (ETH), totaling approximately $126 million. The company transferred 27,500 ETH (worth approximately $87.09 million) to an address starting with 0xcbCF and 12,500 ETH (worth approximately $39.59 million) to an address starting with 0x72FE. These transactions are suspected to be part of bankruptcy liquidation procedures.
The move comes at a time of uncertainty for Ethereum’s price. Despite the recent launch of Ethereum ETFs, which are expected to boost the value of the cryptocurrency, ETH has struggled to hold its position above $3,500 and is now approaching a critical support level of $3,100. The launch seems to have followed a classic “buy rumor-sell news” model.
Follow us on Twitter, Facebook and Instagram, and join our Telegram and YouTube channelto stay up to date with breaking news !
