Massive June Options Expiry: Is a Volatility Storm Brewing?
More than $17.27 billion in Ethereum and Bitcoin options contracts are set to expire today, according to the cryptocurrency market. Given that both assets have lately seen a drop, this significant expiration may have an effect on short-term price movement. Traders are preparing for possible volatility with Ethereum at $2.29 billion and Bitcoin options at $14.98 billion.
There are a lot more options expiring today than there were last week. 139,390 contracts are involved in Bitcoin options expiration, up from 33,972 contracts the previous week, according to Deribit data. Likewise, the number of Ethereum’s expiration options has increased from 224,509 contracts to 938,551 contracts.
Bullish Sentiment Builds: Bitcoin and Ethereum Options Point to Price Surge
The put-to-call ratio for the expiring Bitcoin options is 0.75, and the maximum pain price is $102,000. This implies that traders are purchasing more call options than put options. Despite the pioneer cryptocurrency hitting new highs, it indicates a generally bullish mindset.
With a put-to-call ratio of 0.52 and a maximum pain price of $2,200, Ethereum also exhibits a bullish perspective, indicating market optimism. For Bitcoin and Ethereum, put-to-call ratios below one indicate market optimism as more traders place bets on price gains.
Bitcoin Faces Resistance at $110K as Max Pain Theory Comes Into Play
Greeks.live analysts observe a mixed mood in the market, with traders reporting flat or break-even results in spite of market momentum. According to the most recent data, Bitcoin’s market value has decreased by 0.30% to $107,036. Ethereum, which is currently trading at $2,445, has also dropped by 0.23%. The decline is expected. The Max Pain Theory states that when options approach expiration, asset prices often move toward their corresponding max pain or strike prices.
Ethereum and Bitcoin are currently trading much over their maximal pain thresholds. Because options expirations frequently result in brief price swings that raise market uncertainty, traders and investors should prepare for volatility.
…with key resistance at 110k noted as a significant level that may be difficult to breach. There’s a shift in focus toward ETH options trading as Bitcoin volatility remains low, with traders expecting potential downside movement in July,
Greeks.live’s analysts
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