Essential Insights
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Bitcoin Options Expiry: Approximately 28,000 Bitcoin options contracts worth ~$3 billion are expiring on June 13, but the impact on spot markets is predicted to be minimal due to pre-existing pressure, with Bitcoin down over 7% recently.
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Market Sentiment: The put/call ratio stands at 0.95, indicating a balanced sentiment among traders, with significant concentration of open interest around the $110,000 to $140,000 strike prices, suggesting bullish confidence.
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Total Market Decline: The cryptocurrency market has seen a substantial slump of 7.4%, losing over $180 billion in market cap, with Bitcoin dropping to around $103,000 and Ethereum experiencing a 10% decline.
- Critical Levels: Key price targets are being monitored closely; Bitcoin is watched around $90,000 for potential retesting, while Ethereum needs to maintain support above $2,500 to avoid further declines.
Will $3B Bitcoin Options Cause Even More Pain Today in Crypto Markets?
Bitcoin faces a significant event today as approximately 28,000 options contracts expire. These contracts hold a notional value of about $3 billion, a scenario similar to last week’s expiry.
Typically, such events impact spot markets minimally. However, Bitcoin already dropped over 7% in just 24 hours. Traders wonder if further pain awaits.
The put/call ratio for this week’s options is 0.95. This indicates a balanced market, where both longs and shorts are evenly matched. Notably, the max pain point resides at $107,000. That price sits about $3,000 above current market values, suggesting where losses could peak during expiry.
Open interest shows that most contracts hover between $110,000 and $140,000. This reflects bullish speculators’ ongoing optimism, despite the current downturn. According to Deribit, over $1.5 billion stands at each of these strike prices.
Meanwhile, Ethereum isn’t left out. More than 250,000 Ethereum contracts, valued at $687 million, also expire today. With a 1.2 put/call ratio, the Ethereum market displays stronger bearish sentiment. Its max pain point sits at $2,700.
Amid these market movements, bears appear to influence trading decisions. Greeks Live noted that many traders now buy protective puts. Despite some believing a price target of $120,000 isn’t realistic, others still hope for a rally before potential corrections.
The larger crypto market reflects this uncertainty. Over the past 12 hours, the total market cap dropped 7.4%, losing over $180 billion. Bitcoin led the decline with a 4.3% decrease, falling to $103,000, while Ethereum plunged 10% below the crucial $2,500 support level.
Amidst the chaos, altcoins struggled as well, with many exhibiting double-digit losses. Notable cryptocurrencies like Solana, Dogecoin, and Cardano joined the downturn, painting a concerning picture for the market.
Despite the volatility, investments in technology and infrastructure continue. Cryptocurrency aims to solve real-world problems, like improving transaction speeds and security. So, while the market experiences turbulence, the underlying technology remains promising.
As the day progresses, traders will keep a close watch on market reactions. The expiry of these options contracts might offer insights into future trends, and whether the pain will extend or stabilize.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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