The upcoming Bitcoin options expiry event on July 26 is set to see around 61,200 contracts with a notional value of $4.26 billion. This particular expiry is larger than usual due to it being the end of the month. The put/call ratio for these contracts stands at 0.61, indicating that almost twice as many long contracts are expiring compared to shorts. Open interest at higher strike prices, such as $70,000 and $100,000, seems to favor the bulls, with significant amounts of money at stake.
In addition to the Bitcoin contracts, there are also approximately 500,000 Ethereum options contracts set to expire on the same day with a notional value of $1.76 billion. The put/call ratio for ETH contracts is 0.46, signaling that there are more than twice as many long contracts expiring than shorts. The largest open interest is seen at the $4,000 strike price, with over $520 million on the line.
Combined Impact and Market Trends
When looking at the combined notional value of both Bitcoin and Ethereum options contracts, it amounts to around $6 billion, making this one of the largest expiry events of the year. Despite the launch of spot Ethereum ETFs in the US, the markets have not seen a significant boost in momentum. In fact, spot markets have experienced a decline of approximately $120 billion over the week, with Bitcoin retracing to $64,000.
Bitcoin, after failing to break through resistance at $68,000 earlier in the week, managed to reclaim $67,000 during the Friday morning Asian trading session. However, Ethereum has faced more challenges, dropping 11% since the launch of spot ETFs. The price of ETH fell to $3,100 on July 25 before recovering slightly to $3,250. Additionally, Ethereum ETFs experienced outflows of $152 million on July 25.
The upcoming options expiry event for Bitcoin and Ethereum is expected to have a significant impact on the market. While Bitcoin has shown some signs of recovery, Ethereum continues to face challenges despite the introduction of spot ETFs. Traders and investors will be closely monitoring the outcomes of these expiries and how they shape the future trends of the cryptocurrency market.