The crypto market holds its breath before the expiration of $3 billion in Bitcoin options.

Another week is about to end, which means that crypto options contracts are about to expire amid a bullish spot market.

On July 4th, approximately 27,300 Bitcoin options contracts will expire, with an estimated notional value of around 3 billion dollars.

This event is significantly smaller compared to the expiration at the end of the month and the end of Q2, so the potential impact on the spot market is quite low.

The market has shown signs of recovery over the weekend as economic data from the United States has sent positive signals.

Bitcoin options contract expiration this week

The current Bitcoin options contract has a Put/Call ratio of 1, indicating that the Long and Short sides are evenly distributed. Additionally, the maximum pain point is $106,000 — about $3,000 lower than the current spot price and also the price at which most traders will incur the most losses when the contract expires.

Open interest (OI) – that is, the value or quantity of BTC options contracts that have not expired – is currently concentrated the most at the strike prices of $115,000, $120,000, and $140,000, with over $1.5 billion at each level. However, open interest at lower price levels has declined, indicating a more bullish sentiment from derivative investors.

This week, the Deribit derivatives exchange announced:

"When the macro market is quiet and trading volume gradually cools down, traders are slowly increasing their exposure to Bitcoin futures contracts."

However, in the weekly market update, the crypto derivatives provider Greeks Live stated that the community is showing a clear negative sentiment, with many traders expressing disappointment due to the stagnant market and high levels of volatility.

Greeks Live also notes that the level of 92,000 dollars is being monitored as an important target - however, this information was released before Bitcoin surged past the 109,500 dollar mark on Thursday.

Source: DeribitIn addition to the Bitcoin options contract expiring today, there are also approximately 220,000 Ethereum (ETH) contracts set to expire, with an estimated nominal value of around 584 million dollars, a maximum pain point of 2,500 dollars, and a Put/Call ratio of 1.28. Accordingly, the total nominal value of crypto options expiring this Friday amounts to about 3.6 billion dollars.

Source: Deribit## Overview of the crypto market

The total crypto market capitalization has increased by 0.3% in the past 24 hours, currently reaching approximately $3.37 trillion at the time of writing. However, the market has remained volatile within a narrow range around this zone for the past few months.

Bitcoin surged above the $110,000 mark at the end of Thursday's trading session, but then adjusted to $109,058 at the time of writing.

Currently, BTC is at the upper edge of the sideways price channel and is only about 2% away from the all-time high. Analyst Rekt Capital stated:

"Bitcoin only needs to stay above the $108,890 level for the remainder of the week to establish a positive weekly candle close, surpassing the last major resistance level."

ETH reclaimed the $2,600 mark on Thursday, but is currently trading below this level at $2,555. The leading altcoin by market capitalization has also struggled to generate new bullish momentum over the past two months.

Minh Anh