The expiration of $1.62 billion in Bitcoin and Ethereum options contracts could lead to short-term price volatility in the crypto market. Bitcoin options account for $1.25 billion of the total, while Ethereum options hold $367 million in value.
Data from Deribit shows that 18,583 Bitcoin options will expire with a put-to-call ratio of 0.86 and a maximum pain point of $64,000. Similarly, Ethereum options, with 140,320 contracts, have a put-to-call ratio of 0.62 and a maximum pain point of $2,500.
With Bitcoin trading above $67,000 and Ethereum above $2,600, prices could drop towards these maximum pain points. This aligns with the Max Pain theory, predicting that options prices will converge around key strike prices, resulting in option buyers losing value.
Despite this, pressure on Bitcoin and Ethereum prices may lessen after the expiration, scheduled for 08:00 UTC on Friday. Analysts suggest that the upcoming US elections might boost market sentiment, providing a potential upside for Bitcoin.
