Crypto Markets Bracing for $10 Billion Options Expiry Event on Friday

The crypto market is bracing for a substantial options expiry event on Friday, July 31, which could lead to increased spot market volatility. Approximately $9.57 billion in notional value will expire, with around 149,000 Bitcoin options contracts expiring. This is significantly larger than usual events due to it being the end of the month.

The put/call ratio stands at 0.28, indicating a substantial number of call contracts compared to put contracts. Max pain is estimated to be around $64,000, which is close to current spot prices. As a result, many investors will be in the money on expiry.

Total Bitcoin options open interest has risen to $34.7 billion over the past few weeks, with the highest OI at the $70,000 and $72,000 strike prices on Deribit. Ethereum's options expiry event is smaller, with approximately 433,000 contracts expiring and a notional value of $825 million.

The total notional value of crypto options expirations will be around $10.4 billion, making it a substantial event. Crypto markets have retreated slightly this week, with approximately $25 billion leaving the space following the Fed's decision to leave rates unchanged and the resumption of military action between the US and Iran.