On Friday, August 2, approximately 37,000 Bitcoin options contracts will expire with a notional value of approximately $2.4 billion.
The option expiration event is smaller than last week's month-end event but a bit larger than the average expiration event.
Bitcoin Options Expiry
The put/call ratio for BTC derivatives expiring today is 0.58, meaning there are almost twice as many long or call contracts expiring as there are short or puts. The biggest pain point, or the point where losses are greatest, is $66,000 above the current spot price.
According to Deribit, open interest – the value or number of contracts that have yet to mature – remains very high at the $70,000 strike price, with open interest standing at $846 million.
Crypto derivatives provider Greeks Live noted that the market was weak this week and that an Ethereum ETF disappointingly performed.
But he added that the key term, implied volatility, is “falling significantly” as “several key events have settled in nicely.”
Deribit’s Forward-Looking Bitcoin Volatility Index (DVOL) has fallen nearly 15% since its monthly distribution in July, from 62% to 48%, he added.
Options data for August 2
37,000 BTC options expire with a put-call ratio of 0.58, Max Pain Points of $66,000, and a notional value of $2.4 billion.
180,000 ETH options expire with a put-call ratio of 0.55, Max Pain Points of $3,300, and a notional value of $600 million.
Crypto… pic.twitter.com/rm38CEf4kj— Greeks.live (@GreeksLive) August 2, 2024
In addition to today's Bitcoin options expiration, approximately 180,000 Ethereum options with a notional value of $600 million are set to expire, bringing the total crypto derivatives market to $3 billion.
The ETH contract has a put/call ratio of 0.55 and a maximum pain point of $3,300.
Impact on the cryptocurrency market
The overall crypto market capitalization fell 4.8% this week, to $2.41 trillion as of Friday.
Bitcoin prices have been on a downward trend since hitting $70,000 on July 29, trading 8% lower at $64,250 in Friday's morning Asian trading session. The asset hit an intraday low of $62,400 on August 1 but has since recovered somewhat.
Ethereum also weakened, down 7% since Monday and trading at $3,155 in Asian markets on Friday, but spot ETF inflows for the asset returned to positive levels on Aug. 1, totaling $26.7 million.
Greeks Live concluded that the outlook for the rest of the month is not bright.
“US stocks have been struggling recently and there is not yet enough positive momentum to support the market in August, so the market may have to wait another month or two.”
Moreover, crypto analysts expect September to be a month of market recovery.
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