Today, $18 billion of Bitcoin and Ethereum options expire: Market expects huge changes


Today, a record $18 billion in Bitcoin and Ethereum options expire, predicting market turbulence.

Bitcoin and Ethereum options contracts worth $18 billion will expire today, a record for the cryptocurrency industry. This might cause unanticipated volatility and provide traders and investors great chances.

Bitcoin's expiring options are $14.38 billion, whereas Ethereum's are $3.7 billion. The number of contracts expiring today—88,537 Bitcoin and 796,021 Ethereum—is many times greater than last week. This indicates increased activity and traders' hopes of profit or risk reduction.

At 0.69, Bitcoin's put-to-call (P/C) ratio indicates confidence as more traders bet bullishly. Ethereum's ratio declined to 0.41, indicating higher trust in price growth. Low P/C ratios suggest that more call options (bets on price rises) than put options are being bought.

BTC and ETH are trading above their maximum pain values. Ethereum costs $3,000, whereas Bitcoin costs $85,000. As prices approach the "maximum pain price" at expiration, options purchasers suffer the greatest losses, causing market changes.

FalconX Head of Research David Lawant said that Bitcoin's P/C ratio rose in the fourth quarter of 2024 due to rising hedging attitude. “Demand for downside protection has been rising,” he added, suggesting traders may be protecting year-end performance indicators. Bitcoin's P/C ratio for December 27 options increased from 0.35 in October to over 0.70.

Ethereum emotion contrasts. ETH's P/C ratio has dropped from 0.97 at the end of October to 0.41, indicating bullishness. This change shows traders' trust in ETH's price stability or growth.

Leveraged bets favoring the upside might cause strong market fluctuations, particularly if prices diverge greatly from expectations. Analysts believe this record-breaking expiration might determine the market's narrative for 2025 as traders eagerly anticipate more developments.

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