A large number of options for Bitcoin ($BTC
) and Ethereum ($ETH
) totaling more than $4 billion expire today
We are looking at how expiration will affect the price dynamics of the two largest cryptocurrencies by capitalization.
Analysts say the options market is highly polarized
According to Deribit, on November 15, 38,623 bitcoin options contracts will expire. The total amount of these contracts is $3.4 billion.
The maximum pain point is at around $80 thousand. The put and call ratio is 0.85.
189,662 Ethereum options contracts worth $581 million are also expiring today. The maximum pain point of these contracts is $3,000, and the put—to-call ratio is 0.91.
In options trading, the maximum pain point means the level of the asset price at which option holders incur the greatest losses. The put and call ratio is a comparison of the number of options for lowering the value with options for increasing. The latter indicator helps to understand which sentiment dominates the market.
The put and call ratio below 1 signals that traders are betting on further growth in bitcoin and Ethereum quotes.
Most investors are confident that by the end of the year, the value of #BTC☀ will reach $ 100 thousand. However, there are two more major option expirations ahead of the market, which can significantly affect the dynamics of cryptocurrencies and affect their trajectory in 2025.
"Looking at the options market, you can see a clear polarization, as well as a strong fragmentation in trading: some large traders tend to open long positions, while a larger number of market participants are currently on the short side," the Greeks.live analysts shared.
Against the background of expiration, there may be increased volatility in the market. Therefore, traders should be very careful.
According to CoinGecko, at the time of writing, bitcoin is trading at $88,294, having dropped by 1.7% over the past day. At the same time, the price of Ethereum has decreased by 3.9% and now stands at $3,069.