The post Bitcoin and Ethereum Face Volatility: $2.6B Options Expiring appeared on BitcoinEthereumNews.com.

The crypto market will witness $2.62 billion in Bitcoin and Ethereum options contracts expire today. This massive expiration could affect short-term price action, especially as both assets have recently declined. With Bitcoin (BTC) options valued at $2.02 billion and Ethereum (ETH) at $598.99 million, traders are bracing for potential volatility. What Traders Should Watch Amid Over $2.6 Billion Options Expiry Today’s expiring options mark a slight drop from last week. According to Deribit data, Bitcoin options expiration involves 20,728 contracts, compared to 20,815 contracts last week. Similarly, Ethereum’s expiring options total 174,863 contracts, up from 164,330 contracts the previous week. Expiring Bitcoin Options. Source: Deribit For Bitcoin, the expiring options have a maximum pain price of $110,000 and a put-to-call ratio of 0.87. This indicates a generally bullish sentiment despite the asset’s recent pullback. In comparison, their Ethereum counterparts have a maximum pain price of $3,700 and a put-to-call ratio of 0.48, reflecting a similar market outlook. Expiring Ethereum Options. Source: Deribit The maximum pain point is a crucial metric that often guides market behavior. It represents the price level at which most options expire worthless. Additionally, the put-to-call ratios below 1 for both Bitcoin and Ethereum suggest optimism in the market, with more traders betting on price increases. Nevertheless, with that volume of options expiring, traders and investors should brace for potential volatility. “Options expiry can lead to increased volatility as traders adjust their positions. Watch for potential moves in SPX and BTC as they may react to these market dynamics,” one user on X shared. Could Options Expiry Catalyze Market Recovery? Of note is that these expiring options come after Bitcoin retracted to $94,235. As of this writing, the pioneer crypto was trading for $97,157, down almost 4% since the Friday session opened.   With a maximum pain point of $101,000, Bitcoin stands…

---

Filed under: News - @ December 20, 2024 6:16 am