With over $2.2 billion in Bitcoin (BTC) and Ethereum (ETH) options set to expire today, the cryptocurrency market braces for potential short-term turbulence. The looming expiration of these options contracts raises questions about the extent of volatility it could introduce and its impact on the prices of the two leading cryptocurrencies.
Examining the impending options expiration for Bitcoin and Ethereum reveals a significant sum, with approximately $1.24 billion in Bitcoin options contracts and $984 million in Ethereum options contracts reaching maturity. Traders closely monitor such events as they could potentially trigger a surge in selling or buying pressure, depending on market sentiment.
Deribit data indicates that 17,609 Bitcoin contracts are scheduled to expire, with a put-to-call ratio of 0.67, suggesting a prevalence of purchase options (calls) over sales options (puts). Bitcoin’s maximum pain point, estimated at around $70,000, signifies the price level at which the asset would inflict the most significant financial losses on holders.
Despite the looming expiration, analysts at crypto option trading tools provider, Greeks.Live, offer a positive outlook for Bitcoin and Ethereum prices. They highlight the crypto market’s resilience following interest rate cuts announced by the Bank of Canada (BOC) and the European Central Bank (ECB), indicating strength in the face of macroeconomic shifts.
In the Ethereum market, 259,641 contracts are set to expire, with a put-to-call ratio of 0.64. Ethereum’s maximum pain point is identified at $3,650. While options expirations can disrupt markets temporarily, historical trends suggest subsequent stabilization, prompting traders to remain vigilant and utilize technical indicators and market sentiment analysis effectively.
As the week progresses, both Bitcoin and Ethereum exhibit resilience in the face of potential market volatility. Bitcoin recently reached a two-month high of $71,713 before experiencing a minor retreat, while Ethereum maintains a trading price of $3,805, demonstrating stability amidst evolving market conditions.