When $2 billion worth of BTC options expire today, will Bitcoin fall?
As the month comes to an end, a sizable number of Bitcoins options contracts are slated to expire today. Will this be sufficient to stir up the cryptocurrency markets, which have lain dormant for days? On July 28, 71,000 BTC contracts will expire, making it the biggest option expiry event in the next two months.
Impact of Bitcoin Options Expiration
The expiry event this week is one of the greatest in recent memory with a theoretical value of $2.08 billion. Additionally, the maximum pain point is $29,000, which is rather close to the price of Bitcoin on the spot market right now. The pricing range with the highest number of open contracts has the greatest amount of misery. Additionally, it is the point at which the majority of losses will occur when agreements expire. The put/call ratio of the BTC options contracts that are expiring today is 0.57. This indicates that nearly two times as many demand options as put contracts are being sold. The ratio is calculated by dividing the total number of contracts with short sellers (puts) by the total number of contracts with long sellers (calls). Additionally, numbers lower than 1 signify more call contracts, which frequently denotes a positive outlook for the asset that is being discussed.
Volatility of BTC
According to Greeks Live, volatility remained minimal this week, with Monday’s decrease bringing this month’s delivery price exactly at the point of maximum discomfort. Implied volatility (IV), it continued, is likewise at historic lows. The projected turbulence for a crypto asset over the following 30 days is measured by IV by examining derivatives contract activity.
Outlook for BTC Prices
At the moment of writing, the price of one bitcoin has dropped 1% for the day to $29,187. Volumes have stopped increasing, and they have stayed at this point for the majority of this week. Last weekend, BTC was unable to maintain a price over $30K, and it has not retested that level this week. This signals that the opposition is too great, and that the easiest course for the next move may be downward.
