Altcoin News market analysis — Source: CoinGape Crypto market recovery signs are flashing ahead of quarterly options expiry. $9.3 billion in Bitcoin options to expire today but short liquidat
Crypto market recovery signs are flashing amid buy-the-dip sentiment following a crash. Traders brace for volatility as over $10.5 billion in Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) options are expiring today.
BTC price has jumped more than 2% above $60K in Asia trading hours, following a drop to $58K lows. In the last few hours, the crypto market recorded nearly $35 million in short liquidations.
According to Deribit data, 151K BTC options with a notional value of are set to expire on June 26. The put/call ratio of 0.63. However, the 24-hour put volume is significantly higher than the 24-hour call volume. The put/call ratio has increased to 1.24, indicating traders are bearish.
However, crypto market traders are adjusting their positions to rise in BTC implied volatility and 25 delta skew. This indicates traders are hedging for downside protection and expect a recovery phase after the quarterly crypto market options expiry.
Moreover, the max pain price is $70,000, above the current Bitcoin price of nearly $59,900. However, data shows a high probability of expiring below the $59,500 strike price, with 50% for $60,000 at press time.
Traders are buying $65K call options for the July 3 expiry, flashing signs of a crypto market recovery in the coming days. Notably, Core PCE inflation coming in line with expectations, falling oil prices, and plunging US dollar index (DXY) and treasury yield could reset the crypto market for an early recovery phase.
Bitcoin Options Open Interest. Source: Deribit As per GreeksLive, the crypto market’s risk is building up, but institutions and whales haven’t continued betting on further downside yet. They are awaiting the settlement for further cues on market direction.
Bitcoin Options Open Interest Gex. Source: GreeksLive Crypto market participants also expect a potential recovery amid quarterly Ethereum options expiry. 1,002K ETH options with a notional value of over $1.5 billion are set to expire, with a put/call ratio of 0.50.
In the last 24 hours, put volume exceeded call volume, with a put/call ratio of 1.33. It shows bearish sentiment among traders as puts dominated calls. However, implied volatility and 25-delta skew indicate a potential rebound in the coming days.
Also, the max pain point is at $2,000, significantly above the current price. Options traders are betting on short-term ETH trading after the crypto market crash. The probability of ETH options expiring above the current market price of $1,550 is at 58%.
ETH price rebounded 3% after falling more than 8% in the past 24 hours, currently trading at $1,553. The 24-hour low and high are $1,510 and $1,656, respectively. However, trading volume has increased by 14% amid buy-the-dip sentiment.
ETH Options Open Interest. Source: Deribit Ethereum treasuries Tom Lee-backed Bitmine Immersion (BMNR) and SharpLink (SBET) are buying ETH at dips. ShapLink purchased 5,000 ETH from FalconX today after 8 months, increasing its holdings to 876,285 ETH.
More than 41K XRP options with a notional value of almost $43 million are set to expire today. The put/call ratio is 0.71. Call volume is still higher than put volume in last 24 hours, with a put/call ratio of 1.25.
The max pain point is at $1.30, above XRP price of $1.03 at the time of writing. However, traders are betting on XRP to recover above $1.10 despite significant selling pressure.
XRP Options Expiry Moreover, XRP on-chain data indicates a rise in positive whale flows amid the recent drop in prices. If whale accumulation remains in the positive region in the coming days, it could trigger a recovery amid Ripple securing MiCA compliance.
XRP Whale Flow. Source: CryptoQuant 83K SOL options with a notional value of over $57 million to expire, with a put/call ratio of 0.50. In the last 24 hours, call volume remained higher than put volume, with a put/call ratio of 0.99. This signals that options traders are overall bullish and awaiting the expiry of Bitcoin and Ethereum crypto options for cues on market direction.
Also, the max pain point is at $80, with traders targeting SOL at $70 in the coming weeks. SOL price has rebounded 6% to $68 over the past few hours. Trading volume has increased by 15% over the past 24 hours.
SOL Options Expiry Crypto Market Flashes Recovery Signs Ahead of $10.8B Bitcoin, ETH, XRP, SOL Options Expiry originally appeared on CoinGape
