Crypto analyst and host of Altcoin Daily Aaron Arnold is predicting that the volatility of the second-largest crypto by market cap will surge before this month ends.
In a new video, the closely-followed trader tells his 841,000 subscribers that the expiry of Ethereum (ETH) options toward the end of June could significantly increase the crypto asset’s volatility due to the year-to-date record amount that will be settled.
“Options expire every month. This in itself is not new. The reason it’s news though is because on June 25th, Ether will face the largest options expiry in 2021 as $1.5 billion worth of open interest will be settled…
This figure is 30% larger than last month’s expiry which took place as Ether’s price plunged 17% in five days and made a local bottom. So if you hold Ethereum, expect volatility towards the end of the month.”
The YouTuber adds that the expiry of ETH options could move the price in either direction.
“Options expiring does not necessarily mean that the price will tank. It means that a certain amount of the supply which was locked up in a contract will get unlocked. And then all those traders will have the option to either buy or sell…
Now last month, when these options expired, the market was a little toppier. This month, the options are expiring after we just saw this massive correction. So who knows? Anything can happen. Just expect volatility. Hold. Think long term.”
Besides Ethereum, Bitcoin futures will also expire on June 25th. Crypto analyst Justin Bennett predicts that the flagship cryptocurrency could bottom out around that date.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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