Crypto Markets Bracing for Massive Options Expiry Event on July 31

Crypto markets are bracing for a massive options expiry event, with around $10 billion in notional value set to expire on July 31. This includes 149,000 Bitcoin options contracts worth roughly $9.57 billion and 433,000 Ethereum contracts valued at $825 million.

According to Deribit, the exchange's open interest remains highest at the $70,000 and $72,000 strike prices for BTC options, with $2.4 billion at each. However, short sellers still have $1.3 billion in OI at $60,000.

The put/call ratio for Bitcoin options is 0.28, indicating a significant imbalance between call and put contracts. Max pain is around $64,000, which is close to the current spot price. This means that many traders will be in the money on expiry.

Crypto markets have been experiencing volatility this week, with a total of $25 billion leaving the space following the Fed's decision to leave interest rates unchanged and the resumption of military action between the US and Iran.