June Crypto Options Expiry: Bitcoin and Ethereum Navigate Subdued Market Impact

• June 7th promises to be a significant day for the cryptocurrency market with $2.25 billion in options set to expire.
• This batch includes around 18,000 Bitcoin option contracts, worth an estimated $1.25 billion.
• Although today’s options expiry event is smaller than the previous month-end expiration, it may still cause ripples in the market.

Discover the factors influencing today’s cryptocurrency market as $2.25 billion in options contracts expire, shedding light on the potential impact on Bitcoin and Ethereum prices.

Insights on Bitcoin Options Expiry

A detailed look at the Bitcoin options set to expire today shows a put/call ratio of 0.67, reflecting around 33% more long positions than short ones. The max pain point—a critical price level where most losses occur—is $70,000, slightly below the current spot price of just over $71,000 at this writing.

Market data from Deribit shows nearly a billion dollars in open interest (OI) at the $75,000 strike price. bullish traders targeting $80,000 and $100,000 have open interests of $890 million and $969 million, respectively.

Recent interest rate cuts from the Bank of Canada and the European Central Bank, combined with favorable market conditions for BTC and ETH ETFs, have generated a more upbeat market sentiment. According to Greeks Live, major term implied volatility (IV) for Bitcoin is approximately 50%, indicating a reasonable level of future expected volatility based on current market conditions.

Ethereum Options Expiry

Today also sees the expiry of 260,000 Ethereum options with a notional value of $1 billion, displaying a put/call ratio of 0.64. The max pain point for these contracts is $3,650, which is just below the current spot price of $3,820.

Greeks Live notes that Bitcoin’s volatility this month will largely correlate with macroeconomic news, particularly the Federal Reserve’s interest rate decisions, whereas Ethereum appears to be strongly influenced by ETF approval news.

Overall, the total cryptocurrency market capitalization remains steady at approximately $2.78 trillion, with a 4% increase over the past week. Despite the options expiry and other market activities, the majority of digital assets have shown minimal movement in the past 24 hours.

Conclusion

In summary, today’s $2.25 billion options expiry brings various factors into play for both Bitcoin and Ethereum. While Bitcoin faces multiple bullish open interests and a crucial max pain point, Ethereum’s short-term outlook hinges on ETF-related news. Investors should keep a close eye on the evolving macroeconomic landscape and market sentiments, which will likely influence future price movements of these key cryptocurrencies.