TL;DR
- More than $2.6 billion in Bitcoin and Ethereum options expire today, which could generate significant volatility in the prices of both cryptocurrencies and altcoins.
- Bitcoin accounts for $2.02 billion of the expirations, while Ethereum represents $598.99 million.
- Despite the pressure, market sentiment is optimistic, with put-to-call ratios favoring buys, suggesting expectations of price increases in the short term.
Today, the crypto market faces a massive options expiry for Bitcoin and Ethereum, an event that could cause significant volatility in the prices of both assets and other altcoins. In total, more than $2.6 billion in contracts are set to expire. Investors are adjusting their positions, which could lead to sharp price movements.
Of the total expiring today, Bitcoin accounts for $2.02 billion, while Ethereum represents $598.99 million. These expirations come after a series of declines in the prices of both cryptocurrencies, a factor that has exacerbated market uncertainty.
As the contracts expire, it is expected that prices could approach the “maximum pain” levels, an indicator reflecting the price at which the most options expire worthless. For Bitcoin, this threshold is at $101,000, while for Ethereum it is $3,700. Although both assets are currently trading below these levels, the market could move closer to these prices as the contracts are settled.
Massive Options Expiry: Optimistic Market
Despite the pressure from this options expiry, market sentiment remains relatively optimistic. The put-to-call ratios, which compare put options to call options, show a slight tilt toward buys, suggesting that more traders expect prices to rise. For Bitcoin, the ratio is 0.87, while for Ethereum it is 0.48, both below 1, indicating a preference for contracts betting on price increases.
Although many fluctuations are expected in the short term, many analysts believe that the volatility caused by these expirations could stabilize in the coming days, allowing markets to resume their course in the following weeks.
