As the crypto market turned bearish today amidst an ongoing correction, Bitcoin options valued at $2 billion expired worthless after BTC’s recent dip to $68,000. The derivative market, especially for Bitcoin and Ethereum, has felt the pressure from this recent downturn.
Data reveals that approximately 28,000 Bitcoin options contracts, representing $2 billion in notional value, expired at a max pain price of $69,000 on November 1. The put-call ratio for these options was 0.92, indicating nearly balanced bearish and bullish sentiment among investors. This coincided with a sharp intraday drop of Bitcoin, which plummeted by 5.34% from its peak of $72,662 to reach a low of $68,779. The slip below the $70K mark has dampened the recent positive sentiment after BTC’s consecutive days of gains this week.
The downturn also impacted Ethereum options, where 137,000 ETH options, worth $350 million, expired at a max pain of $2,550 with a put-call ratio of 0.69. This value is considerably lower than the Bitcoin options that expired. ETH experienced a more substantial drop of 6.8% today, dipping from $2,647 to $2,467. Ethereum’s lagging performance relative to Bitcoin, especially this year, is notable—BTC nearly reached its all-time high, while ETH remains over 44% below its peak.
In October, the gap between BTC and ETH’s market cap hit historic levels, with Bitcoin surpassing Ethereum by over $1 trillion in market value. As bearish sentiment grows in the crypto market, analysts are closely watching the U.S. elections next week, speculating that a pro-crypto president might shift momentum back to the bulls.