Bitcoin Options Expiry Could Push BTC Prices Higher If Bulls Buy

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A slew of Bitcoin options contracts are set to expire today, but will they add to the market momentum already boosted by Ripples’ court victory? A large chunk of Ethereum options contacts are also set to expire as ETH breaks above $2,000 for the first time in months.

On July 14, 25,000 Bitcoin options contracts will expire with a notional value of $770,000. Although not a significant expiry event, it may add to the market momentum already boosted by Ripple and XRP.

Bitcoin Options Expiration

The set of Bitcoin options about to expire has a put/call ratio of 0.56. This means that there are about twice as many buy (long) contracts as there are sell (short) contracts.

The ratio is obtained by dividing the number of contacts with short sellers by the number of contracts with long sellers. Additionally, values ​​below one mean there are more buy contracts, indicating bullish sentiment for the underlying asset.

The maximum pain point for options contracts expiring today is $30,500. The maximum price of pain refers to the level with the most open contracts and at which the most losses will be incurred at expiration.

Bitoin OI. Source: Twitter/@GreeksLive

Derivatives power Greeks Live observed that BTC hit a new high for the year. However, judging by market sentiment, most participants do not appear to be enjoying the rally, he added.

Options positions and volumes were well below average this week and the options market was relatively fragmented.

Additionally, 176,000 Ethereum options contracts also expire today. They have a notional value of $355 million and a put/call ratio of 0.66. The maximum pain point for ETH contracts is $1,900.

Changing market dynamics

Greeks Live added that many whales are waiting for a change in the market after opening a large position earlier this month. This week’s trading is more about adjusting positions, he added.

BTC’s current call position is more than double and ETH is more than triple, so once the uptrend begins, the existing options pattern will be disrupted.

However, this shift may have just happened with the current $80 billion spot crypto market rally.

This may encourage derivatives traders to buy more call contracts if they anticipate further momentum and price gains.

Total capitalization rose 6.8% on the day to $1.30 trillion at the time of writing.

However, the broader crypto market is still in its four-month sideways channel, and there has been no longer-term breakout yet.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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