80% of BTC options now at a loss, raising volatility fears

Approximately $8.6 billion worth of Bitcoin options set to expire this month are now out-of-the-money (OTM) following a drop in the cryptocurrency's price, CoinDesk reported, citing data from Deribit. OTM refers to options that are not profitable to exercise at the current price. Of the roughly $10.6 billion in open interest for the options expiring on June 26, only about 20% are in-the-money (ITM), leaving the remaining 80% at a loss. This structural imbalance could trigger increased short-term volatility as market makers and traders adjust their hedge positions before the expiration date. The report noted that the max pain price for the options market is currently around $74,000, approximately 14% higher than Bitcoin's spot price of $65,000. Significant open interest is concentrated at the $60,000 put options (about $450 million) and the $80,000 call options (about $406 million), which are being perceived as key support and resistance levels.