Bitcoin Flatlines Before Options Expiry
Bitcoin Holds Steady Ahead of Major Options Expiry
Bitcoin traded within a narrow range on Thursday, remaining relatively calm before Friday's significant options expiry on Deribit. The leading cryptocurrency currently sits at $107,500, experiencing a minor 0.2% dip over the past 24 hours. The CoinDesk 20 index, tracking the top 20 cryptocurrencies (excluding stablecoins), saw a slightly steeper 0.9% decline during the same period.
Deribit Options Expiry: Key Metrics
Jean-David Péquignot, Deribit's chief commercial officer, highlighted the significance of Friday's event, stating, "This Friday marks one of the largest option expiries of the year on Deribit." He noted that $40 billion in BTC options open interest exists, with 38% set to expire on Friday. The max pain price is $102,000, with a put/call ratio of 0.73.
Péquignot also observed a decline in Bitcoin's implied volatility (Deribit DVOL) to 38% from 50% in April, suggesting increased market confidence in Bitcoin's role as a macro hedge. However, put-call skews indicate no clear short-term directional bias among traders.
He emphasized the importance of the $105,000 Bitcoin level as a key support point, cautioning against potential negative price movements if this level breaks. Low open interest in perpetual contracts and subdued implied volatility and skew point to limited expectations for dramatic price swings leading into Friday's expiry.
Crypto Stock Market Movement
Several crypto stocks experienced gains on Thursday, notably Core Scientific (CORZ), which surged over 33% following a Wall Street Journal report of a potential acquisition by CoreWeave (CRWV). Circle (CRCL), Coinbase (COIN), Riot Platforms (RIOT), and Hut 8 (HUT) saw increases ranging from 5% to 7%, while MicroStrategy (MSTR) saw a minor dip of nearly 1%.
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