The cryptocurrency market is bracing for potential turbulence today, with $5.26 billion worth of Bitcoin (BTC) and Ethereum (ETH) options contracts set to expire. This includes $4.2 billion in Bitcoin options and $1 billion in Ethereum options maturing on Deribit, prompting traders to closely watch how prices may react, especially with Bitcoin struggling to break past the $69,000 resistance level.
Will the market surge to new heights, or will it plummet to new lows? Read on to find out.
Options Expiry Today – Are You Ready?
Data from Deribit shows that around 62,600 Bitcoin options contracts, valued at approximately $4.26 billion, are expiring today. A significant portion of these are “in-the-money” (ITM) call options, meaning their strike prices are below the current market rate, which could lead to increased price swings as traders adjust their positions.
The put-to-call ratio for Bitcoin is 0.66, indicating that there are more call options (bullish bets) than put options (bearish bets). The “maximum pain” point, where the most options expire worthless, is at $64,000, suggesting prices could gravitate toward this level.
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Market Sentiment is Uncertain
On the Ethereum side, roughly 403,000 options contracts, worth about $1 billion, are also expiring. The put-to-call ratio for Ethereum is 0.97, showing a near-equal mix of bullish and bearish positions. This balance reflects the uncertainty among traders, hinting at potential volatility in the near term.
Together, this week’s options expirations total around $5.3 billion, likely influencing the direction of both Bitcoin and Ethereum.
Current Market Outlook
Open interest (OI), which measures the total number of outstanding options contracts, is still high at important price points. There is over $1 billion in OI at the $70,000 strike price, and another $1.2 billion at the $80,000 level. This suggests that some traders remain optimistic about a potential price surge, despite recent market struggles.
Earlier in the week, Bitcoin futures open interest hit record highs, topping $40 billion, according to Coinglass data. However, some of this leveraged exposure has eased due to recent market pullbacks.
Bitcoin in the Spotlight
Experts at Greeks Live pointed out that Bitcoin’s share of the options market is back to levels last seen in 2021, mainly because of Ethereum’s current weakness. As a result, traders are focusing more on Bitcoin, with options market trends largely driven by Bitcoin data.
The approaching U.S. presidential election is adding another layer of uncertainty. As election events unfold, the cryptocurrency market could see further shifts in volatility, with traders adjusting their strategies based on possible policy changes.
As the crypto market braces for this significant options expiry, traders and investors alike will be watching closely to see how the market reacts. Keep your fingers crossed and stay tuned!