The crypto market is on high alert right now, as nearly $1.6 billion worth of Bitcoin and Ethereum options are set to expire today at 1:30 PM IST. What this development indicates is a chance for a sharp increase in market volatility. Let’s have a closer look at the possible implications. It’s an event every trader should be aware of!
With $1.32 billion in notional value, Bitcoin options make up a major portion of the total $1.6 billion expiring today. Notably, the max pain price is set at $58,000. Crypto traders are closely watching this level – where most option contracts are set to expire worthless. If the BTC price gravitates towards this level, it may lead to interesting market dynamics.
At present, the BTC price stands at $58,093.99 – a bit higher than the max pain price. In the last seven days, it has experienced a rise of +4.1%. At the start of the month, the price was around $57,344. It hit a low on September 5, when it touched $53,994.12. Since then, the market has seen a steady climb. This movement has led to increasing interest in bitcoin price prediction for the coming weeks, as traders anticipate the impact of the options expiry.
Ethereum options are also a significant part of today’s crucial options market movements. At least $290 million worth of Ethereum options are expiring today. Notably, its maximum pain price is set at $2.400. Traders are closely monitoring whether the price of ETH moves towards this level.
At present, the price of Ethereum is $2,347 – a bit lower than the max pain price. In the last 24 hours, it has seen a slight fall of 0.7%. At the beginning of the month, the price was around $2,429. After a massive single-day fall from $2,369 to a monthly low of $2,228 on September 6, the market lost momentum. Since then, it has been struggling to regain the pace, though it has yet to reach anywhere near the opening price of the month. This has led to increased speculation around Ethereum price prediction as traders assess its next potential moves.
When large amounts of options expire, markets often experience greater volatility. Traders may adjust their positions based on where the prices of BTC and ETH move in relation to their max pain levels.
In conclusion, it is reasonable to assume that both the Bitcoin and Ethereum markets are heading towards a period of short-term market fluctuations.
Also Read : Bitcoin Price Prediction: Another Pullback Ahead; Is the Next Surge Taking Bitcoin to $68K
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