$3.6 Billion in Bitcoin and Ethereum Options Expire as Crypto Bill Clears Congress

With the recent clearance of a significant crypto bill in Congress, the crypto market braces for the expiration of $3.6 billion worth of Bitcoin and Ethereum options. According to data from the derivatives platform Deribit, a total of 27,384 Bitcoin options contracts will expire on July 4, amounting to $2.98 billion in notional value. The current put-call ratio stands at 1.05, with 14,010 put contracts and 13,373 call contracts. Notably, there are 131,881 put contracts compared to 105,397 call contracts, resulting in a put-to-call ratio of 1.25.

Bitcoin’s price needs to maintain above $108,890 to secure a bullish weekly close, while Ethereum is striving to reclaim the crucial $2,500 support level. The market sentiment for both Bitcoin and Ethereum has been positive recently, with gains registered over the past week.

“Bitcoin just needs to stay above $108,890 for the remainder of the week to set itself up for a bullish Weekly Close above the final major resistance,” as shared by Rekt Capital on Twitter.

However, amidst the optimism, veteran market analyst Arthur Hayes is foreseeing a potential price drop for Bitcoin, predicting a crash to $90,000 prior to the Jackson Hole event scheduled for August.

The Market Reaction and Investor Sentiment

Following the news of the crypto bill’s passage in Congress, the market is closely monitoring the options expiration alongside the evolving price movements of Bitcoin and Ethereum. Investors are particularly attentive to Bitcoin’s ability to maintain its price above the crucial support level and Ethereum’s attempt to reclaim its position above $2,500.

Sam Boolman, ChainIntel’s lead analyst, commented, “The expiration of such a significant amount of options could lead to heightened volatility in the market, especially if Bitcoin’s price approaches the key threshold of $108,890. Traders and investors are advised to closely watch for any price fluctuations and consider the potential impact of Hayes’ prediction on market sentiment.”

Arthur Hayes’ Forecast and Its Implications

Arthur Hayes, known for his bold predictions in the crypto market, has raised concerns with his forecast of a potential Bitcoin price crash to $90,000. His anticipation of this price level before the Jackson Hole event introduces an element of uncertainty into the market, prompting traders to reassess their risk management strategies.

According to Sam Boolman, “Hayes’ prediction adds a layer of complexity to the market dynamics, as it introduces a bearish sentiment amidst the current bullish trend. Traders should exercise caution and be prepared for increased volatility as the market reacts to these conflicting signals.”

Key Takeaways for Investors

• The expiration of $3.6 billion in Bitcoin and Ethereum options on July 4 signifies a critical event in the crypto market.
• Bitcoin’s price stability above $108,890 and Ethereum’s recovery above $2,500 are key indicators for market sentiment.
• Arthur Hayes’ forecast of a potential Bitcoin price crash introduces a note of caution for investors and traders.