Today sees the expiration of approximately $3 billion worth of Bitcoin and Ethereum options, contributing to heightened anticipation and potential volatility in the crypto market. Investors are closely monitoring the developments.
Data from Deribit indicates 23,481 Bitcoin contracts, worth $2.29 billion, are expiring with a put-to-call ratio of 1.11. The maximum pain point is $97,000, where most contracts may expire worthless. Analysts suggest mixed market sentiment with indications of strong long positions in the spot bull market.
Bitcoin is witnessing a predominantly bearish outlook as traders hedge against possible declines, supported by high funding rates for leveraged contracts. In contrast, Ethereum shows a bullish sentiment with a put-to-call ratio of 0.63. On this expiry date, 148,733 Ethereum contracts will expire, valued at $581 million.
While Bitcoin corrected after a peak of $104,000, influenced by an overleveraged market and profit-taking, Ethereum has modestly increased by 0.73% since Friday. Analysts express caution, though optimism persists regarding long-term bullish trends.
The impact of option expiration is typically short-term, with markets expected to stabilize post-expiry. Contracts heading for maximum pain levels, yet any deviations should be temporary.
