Key Points
- Bitcoin’s put-call ratio has turned bearish ahead of the quarterly options expiry.
- The expiry represents over 40% of Deribit’s current open interest, with a combined notional value of $10 billion.
Ahead of the quarterly Options expiry on Friday, the put-call ratio for Bitcoin (BTC) has become bearish.
Today, both Bitcoin and Ethereum (ETH) contracts are set to expire, with a combined notional value of $10 billion on Deribit.
Bitcoin Price and Options Expiry
This event is significant as it accounts for over 40% of Deribit’s current open interest.
According to Deribit’s end-of-June options data, a total of 107,000 Bitcoin options are set to expire with a max pain point of $61,500 and a notional value of $6.6 billion.
The put-call ratio for Deribit’s Bitcoin options leading up to today’s expiry has increased to 1.66.
A ratio higher than one indicates that more put options are being traded compared to call options.
This reflects the volume of investors betting on or hedging against a price decline instead of an increase.
At the time of writing, Bitcoin was trading at $61,675.52, with a 0.88% increase within the last 24 hours.
The current price of Bitcoin indicates that it is still within the max-pain point ahead of today’s expiry.
Bitcoin may eventually stay at a level where most options will expire worthless, potentially leading to reduced volatility and increased market stability around the expiry point.
Deribit CEO Luuk Strijers believes that the “quadruple witching” and related volatility in the United States markets could influence today’s large quarterly expiry.
Historical Bitcoin Options Expiry
Expiries of this kind are historically common in the Bitcoin world.
On May 10, only about 18,000 BTC options expired with a put-call ratio of 0.64 and a Maxpain point set at $62,000.
The expiring BTC contracts held a notional value of approximately $1.15 billion.
In April, the Bitcoin options expiry coincided with the fourth BTC halving event with more than 21,845 BTC options that expired.
They held a notional value of $1.35 billion and a put-call ratio of $0.63.
The put-call ratio for June is high compared to other past months.
With a larger notional value, stakeholders are interested in discovering if similar price trends will follow the expiry.
