Why isn’t $ 1 billion worth of Bitcoin options expiring today causing market volatility?
There is less than a day before the $ 1 billion monthly and quarterly options contract expires. This notable event happened when Bitcoin continued to trade within a range that had formed for months.
Some analysts believe the upcoming $ 1 billion expiration date will help end that trading range and give Bitcoin some much-needed boost.
While this is a reasonable assumption, one trader recently believed that yesterday’s decline was the options move everyone was expecting.
Therefore, Bitcoin could expand its tedious consolidation further in the coming days and weeks.
Bitcoin’s largest option contract expires
June 26th is an important date for Bitcoin, when analysts will finally know if the options market’s growth is enough to have an impact on Bitcoin’s market momentum.
Until recently, options were only a tiny fraction of Bitcoin’s open interest.
This has changed dramatically recently, but the $ 1 billion contract that expires on June 26 will be the largest ever seen.
Currently, the two entities responsible for all of the options trading volume are Deribit and CME. Deribit currently has a significantly higher trading volume than CME, although it has lost some of its market dominance recently.
According to one post recently from the platform, its total open interest in options is now $ 1.4 billion.
“Only 24 hours until the end of the second quarter! Are you ready? Our options stats: Total open interest in the crypto market: $ 1.96 billion. Total open interest of Deribit options market: $ 1.4 billion. Bitcoin OI June 26: 73,634 contracts valued at $ 675.3 million. ETH OI June 26: 308,635 contracts worth $ 71.4 million. “
Therefore there can be no volatility
One trader stated that he does not believe that the option expiration on June 26 will result in any significant volatility as many argue.
He believes this volatility was actually seen yesterday as Bitcoin rebounded to lows in the region below $ 9,000 before a slight bull run.
It seems to me that the volatility that everyone has for the options expiration on the 26th.
– red (@redxbt) June 25, 2020
“It seems to me that the volatility, all of the expiration of the 26th + VAH of this area is resting”.