Key Points
- Bitcoin options worth approximately $1.15 billion are set to expire, with a Put Call Ratio of 0.64 and a Maxpain point at $62,000.
- The open interest for Bitcoin call options is twice that of put options, indicating a bullish market sentiment.
The crypto market is eagerly watching the expiration of Bitcoin options today. Around 18,000 BTC options are nearing their end, with a Put Call Ratio of 0.64 and a Maxpain point at $62,000. The value of these expiring BTC contracts is roughly $1.15 billion.
The 0.64 put/call ratio suggests that more long contracts, known as calls, will expire compared to the short contracts, or puts. Bitcoin’s open interest has also risen to $700 million at the strike price of $70,000 and $100,000, indicating that long contracts are in control. The Open Interest (OI) for put calls has also increased to $360 million.
Market Sentiment and Volatility
However, the open interest (OI) for Bitcoin call options is double that of put options. This shows an overall positive market sentiment. Call options give the holder the right to buy the underlying asset at a set price on or before a certain date.
Trading firms like QCP Capital and Paradigm have seen a renewed demand for upward call options. This includes buyers shutting down current positions to switch to higher strike calls expiring in July and September.
Data from Greeks.Live shows that the crypto market experienced a decline in the past week due to a decrease in trading volume. Despite a reduction in outflows from the US Bitcoin ETF, the market structure and block trading showed a continuous weakness in prices.
This downward trend has led to a decrease in investor confidence, reflected in the dropping implied volatility (IV) across major terms. Current IV levels are slightly below the historical average, indicating some support. However, the scope for further decline is limited at this point.
In the last 24 hours, the Bitcoin price has recovered from below $61,000 levels and is now trading close to $63,000. If the BTC price breaks out above $64,000, we could see it reach $70,000 soon.
