Another week is coming to an end, meaning that with the spot market rising, another batch of Bitcoin and Ethereum options contracts is set to expire.

About 35,000 Bitcoin options contracts will expire on Friday, August 8, with a notional value of approximately $4.1 billion.

This expiration event is smaller in scale than last week's, making it less likely to have a significant impact on the spot market. The spot market has begun to recover following news that Donald Trump allowed Bitcoin to be included in pension funds in the U.S.

Bitcoin options expiration

This week's Bitcoin options contracts have a put/call ratio of 1.38, indicating that the number of short contracts set to expire far exceeds that of long contracts. Additionally, the maximum pain point is $115,000, about $2,000 below the current spot price, where most losses will occur when the contracts expire.

Open Interest (OI), which is the value or number of BTC options contracts that have not yet expired, peaked at $140,000, and on the Deribit platform, based on this execution price, OI has soared to nearly $3 billion. Additionally, as bullish speculators bought a large number of contracts, OI also reached about $2.3 billion based on an execution price of $120,000.

Cryptocurrency derivatives provider Greeks Live noted that the group shows 'mixed sentiment, with traders focused on the low volatility environment and the weekend options execution level of $112,000.'

They stated that despite concerns about a 32% implied volatility, traders are still actively selling put options at an execution price of $112,000, adding that discussions around buying and selling volatility reveal a split in the market, with 'most participants positioned as volatility sellers rather than buyers.'

In addition to today's batch of Bitcoin options, approximately 222,000 Ethereum options contracts are set to expire, with a notional value of $792 million, the highest pain point at $3,600, and a put/call ratio of 1.06. This brings the total notional value of cryptocurrency options expiring on Friday to about $4.9 billion.

Furthermore, according to CryptoQuant's report this week, Binance's futures trading volume reached $2.55 trillion in July, marking the highest level since January.

Cryptocurrency market outlook

The cryptocurrency market rose 3.2% on the day, with the total market capitalization reaching $3.94 trillion during the Asian trading session on Friday morning.

Bitcoin performed well, briefly recovering to $117,500 in early trading before slightly retreating to a high of $116,000. This move helped Bitcoin return to the trading channel of July, now rebounding back to the support level.

Ethereum performed even better, surging 6% on Friday morning, breaking through $3,900 and getting closer to the psychological barrier of $4,000.

After both Ripple Labs and the U.S. Securities and Exchange Commission (SEC) filed to waive their appeals in a five-year court case, XRP became the best-performing altcoin, with an increase of 11%.