The post Bitcoin, Ethereum Face $5 Billion Options Expiry Today appeared on BitcoinEthereumNews.com.

Traders and investors in the crypto market should brace for volatility, with $5.26 billion worth of Bitcoin and Ethereum options expiring today. Specifically, Bitcoin (BTC) options due for expiry total $4.25 billion in notional value, while Ethereum (ETH) options account for $1.01 billion. With this, markets await the impact of such expansive contracts’ expiring. What $5 Billion Bitcoin, Ethereum Options Expiry Means According to data on Deribit, an expansive 62,657 Bitcoin options contracts will expire on October 25, with a put-to-call ratio of 0.66 and a maximum pain point of $64,000. Expiring Bitcoin Options, Source: Deribit At the same time, Ethereum’s options market is set to expire with 403,426 contracts. Today’s expiring Ethereum contracts have a put-to-call ratio of 0.97, with a maximum pain point of $2,600. Read more: An Introduction to Crypto Options Trading. Expiring Ethereum Options, Source: Deribit The put-to-call ratio is an important sentiment indicator in options trading. It compares the volume of put options traded to call options. When this metric is below 1, it generally signals bullish sentiment, with more investors expecting market gains. On the other hand, a ratio above 1 often suggests bearish sentiment, signaling concerns about a market decline. Meanwhile, based on BeInCrypto data, Bitcoin is trading at $67,962 as of this writing, while Ethereum is trading at $2,490. This means that while BTC is trading above its maximum paint point, Ethereum is trading below it. Price Implication Based On Max Pain Point Theory With Bitcoin price currently above its max pain point, if the options expire at the current level, it would generally signify losses for options contract holders. The reverse applies to Ethereum, which is below its strike price as options holders stand to benefit. This is based on the Max Pain theory, which predicts that options prices will converge around the strike…

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Filed under: News - @ October 25, 2024 6:24 am