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William Parvez
William Parvez

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Renewed Bullishness Expected After Bitcoin and Ether's $10B Options Expiry on Friday

According to the search results, analysts are predicting a renewed sense of bullishness in the crypto markets following the upcoming $10 billion Bitcoin and Ether options expiry on Friday, June 28th.
The key details are:

Massive Options Expiry

  • Bitcoin options worth $6.68 billion and Ether options worth $3.5 billion are set to expire on Deribit exchange this Friday.
  • This represents over 40% of the total notional options open interest of over $23 billion on Deribit.

Bullish Sentiment

  • Over 25% of the options are set to expire "in the money", meaning a significant number of derivative contracts are expected to be profitable for their holders at expiration.
  • Traders anticipate a positive shift for Bitcoin by July 12 and Ether by July 5, based on options skew data showing higher premiums for call options.
  • The "max pain" levels, where the largest number of option holders would incur losses, are $57,000 for Bitcoin and $3,400 for Ether. Both assets are currently trading well above these levels.

Potential Volatility

  • Large quarterly options expiries often lead to increased market volatility due to higher trading volumes and the closing/rollover of positions.
  • However, the bullish sentiment reflected in the options data suggests the potential for a renewed bullish trend in the crypto markets after the expiry.

The search results indicate that the impending $10 billion options expiry, while potentially triggering short-term volatility, is expected to pave the way for a renewed bullish shift in Bitcoin and Ether prices. Traders appear to be positioning themselves for an upward move in the coming weeks, as evidenced by the higher premiums for call options.

The fact that over 25% of the options are set to expire "in the money" suggests that a significant number of derivative traders will be profiting from their positions. This could provide a boost to the overall market sentiment and potentially drive further buying pressure.

Additionally, the "max pain" levels being well below the current trading prices of Bitcoin and Ether indicate that the majority of option holders are positioned for gains, further supporting the analysts' predictions of renewed bullishness.

While the options expiry may lead to some short-term volatility, the overall market outlook appears to be positive, with traders anticipating a shift towards a more bullish trend in the near future. This could be a significant development for the crypto markets, potentially setting the stage for a sustained rally in the coming weeks and months.

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