Bitcoin is about to face one of the largest options expirations of the year

Bitcoin is about to undergo one of the largest monthly options expirations of the year, with $15 billion in contracts set to expire on Friday, out of a total of $40 billion in open contracts. This comes amid Bitcoin's volatility being at its lowest in several years.

Market situation and the "max pain" point

Jean-David Péquignot, Commercial Director of Deribit, stated that this expiration is significant due to the overall increase in Bitcoin derivatives activity. The volume of options contracts in Q2 has increased by about 25% compared to last year's average, indicating that the institutional derivatives market is growing. The "max pain" point (the price at which the number of worthless expiring contracts is maximized) on Friday will be when Bitcoin's price drops to $102,000, with a put/call ratio of 0.73. This suggests that traders are only slightly pessimistic about Bitcoin.

Low volatility and future outlook

Jag Kooner, head of the derivatives department at cryptocurrency exchange Bitfinex, agrees that volatility around Friday's expiration is likely to be limited, except possibly during trading hours in New York. He also believes this expiration could create favorable conditions for traders in the coming week, especially if Bitcoin breaks its current threshold and ETF inflows remain strong. If Bitcoin surpasses the $110,000 mark, new positions in the market will become more important for determining the medium-term direction of the market. #anhbacong