On Friday, July 4, approximately 27,300 Bitcoin option contracts worth about $3 billion are set to expire. This event is significantly smaller than last week’s expiry.
Overview of Bitcoin Options Expiry
The recent tranche of Bitcoin options has a put/call ratio of 1, indicating that longs and shorts are evenly matched. The max pain point is set at $106,000, approximately $3,000 below current spot prices.
Current Market Situation
Open interest (OI) in Bitcoin options is highest at the $115,000, $120,000, and $140,000 strike prices, with more than $1.5 billion at each level. This suggests a more bullish sentiment among derivatives speculators.
Cryptocurrency Market Outlook
The total market capitalization has declined by 2% over the past 24 hours, reaching $3.64 trillion. Bitcoin briefly spiked above $110,000 but retraced to $109,500. Analysts predict that Bitcoin needs to hold above $108,890 for a bullish weekly close.
Thus, the upcoming expiry of Bitcoin options creates an intriguing dynamic in the current market conditions; however, the anticipated impact is expected to be more moderate compared to recent events.
