This week is electrifying for the crypto markets, with Bitcoin (BTC) smashing through its previous all-time high to hit $126,198. But just as traders celebrate, the market braces for a storm, over $5.6 billion worth of Bitcoin and Ethereum options contracts are set to expire, making the largest expiries from the past weeks.
According to Deribit, the world’s top crypto options exchange, Bitcoin leads with $4.6 billion in options contracts set to expire. There are about 384,483 open contracts.
The Put/Call ratio is 0.80, which means there are more bullish call options than bearish puts.
The “max pain” price, where most contracts could expire worthless, is $117,000, lower than Bitcoin’s current price of $121,743. BTC has dropped slightly in the last 24 hours, and its market cap is now $2.43 trillion.
Ethereum (ETH) also faces significant expiries, though smaller in scale compared to Bitcoin. As per Deribit data, about $1.06 billion in ETH options, or 2,467,751 contracts, will expire this week.
Meanwhile, the Put/Call ratio of 0.26 shows a very bullish sentiment. The max pain price for ETH is $4,430, slightly above its current price.
When such large options expire, prices can move sharply as traders close positions and dealers adjust their risk. In the past, Bitcoin and Ethereum have seen 2–8% corrections around these events before stabilizing.
Thus, traders are watching key strike levels closely, Bitcoin at $110,000 puts and $120,000–$140,000 calls, and Ethereum at $4,000 and $5,000.
The max pain zone often acts like a magnet, drawing price action toward it just before expiry, which can create volatility and trading opportunities in the short term.
A large options expiry can cause sharp price volatility as traders adjust their positions. This often leads to short-term price swings before the market stabilizes again.
The “max pain” price is the strike price where the most options contracts expire worthless. It often acts like a magnet, pulling the asset’s price toward it right before expiry.
Volatility spikes as traders buy or sell the underlying asset to hedge their expiring contracts, and dealers adjust their hedges, creating large, concentrated waves of market activity.
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