$5.3B Crypto Bomb Drops Today: Bitcoin and Ethereum Options Expiry Shakes Markets

Brace for impact—today's derivatives reckoning could send shockwaves through crypto.

Massive expiry alert: Traders are sweating over $5 billion in Bitcoin and Ethereum options contracts hitting expiration on July 11. The crypto casino's roulette wheel just got heavier.

Why it matters: When this much notional value gets unwound, liquidity gets squeezed harder than a Bitcoin maximalist at an Ethereum conference.

Watch these pressure points: Open interest concentrations at key strike prices could trigger violent gamma squeezes—just in time for the weekend.

The cynical take: Wall Street's latest 'hedging strategy' looks suspiciously like gambling with extra steps. At least crypto traders admit they're degenerate.

Moreover, 240,000 ETH options with a notional value of $710 million are to expire today. The max pain price is at $2,600 and a pull-call ratio is 1.12, indicating bearish sentiment among derivatives traders.

In the last 24 hours, traders have bet more calls than puts as Ethereum price surpassed $3,000. The put-call ratio was 0.52 at the time of writing. Market sentiment has improved and ETH implied volume fell slightly to 60%, as per GreeksLive.

“The last two weeks have seen a very large block of call trades, mainly building and moving positions after quarterly delivery,” GreeksLive added. The options market is far from FOMO and institutional investors are very muted.

At the time of writing, BTC price is trading nearly 7% higher at $118,200. Experts predict bitcoin price to hit as high as $135,000 before the start of the bear market. Whereas, ETH price is trading more than 8% higher at $3,020.

Also Read: Bitcoin Still Has Room to Run; MVRV Z-Score Signals Upside