The crypto market is bracing for a potentially wild day as $3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options contracts are set to expire today. These expirations are known for sparking sudden price swings, and traders are already on edge. Bitcoin has dropped nearly 5% in a single day, falling from its all-time high to $98K, while Ethereum has slipped to $3,890.
But what happens next?
Data from Deribit shows that 23,481 Bitcoin options contracts, worth about $2.29 billion, are expiring today. The put-to-call ratio for Bitcoin is 1.11, suggesting a slightly bearish sentiment. The maximum pain point, the price at which most options expire worthless, is at $97,000.
Bitcoin has already seen a sharp drop, falling nearly 5% from its recent all-time high of $100,000 to $98,000. Analysts at Greeks.live have commented on this volatility, noting the crypto market’s resilience despite these setbacks.
Bitcoin’s rise to $103,000 was impressive, but the recent drop has liquidated many leveraged positions. Despite this, the market remains strong, with solid buying activity in the spot market showing continued positive sentiment.
Still, high funding rates for leveraged contracts suggest that some traders may have overextended their bullish bets, raising concerns about possible further pullbacks.
Ethereum is also facing significant expirations today, with 148,733 contracts worth around $585 million expiring. Unlike Bitcoin, Ethereum’s put-to-call ratio is 0.55, indicating a more bullish outlook. The maximum pain point for Ethereum is at $3,500, slightly below its current price of $3,890.
This lower put-to-call ratio signals that traders are more optimistic about Ethereum’s price recovery than Bitcoin’s. However, like Bitcoin, the impact of these expirations is expected to be short-term.
As both Bitcoin and Ethereum options contracts expire, we can expect short-term price movements toward their maximum pain levels, causing temporary volatility. However, these effects are often brief. Broader market trends and investor sentiment are likely to be the main drivers of price movements.
Bitcoin fell 5% due to expiring options, high funding rates, and the liquidation of leveraged positions, triggering short-term pullbacks.
Ethereum has a more bullish outlook, with a lower put-to-call ratio and higher optimism, suggesting stronger price recovery potential.
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