Volatile hours in cryptocurrencies: Options expiration!
As of December 13, approximately $3 billion worth of Bitcoin ($BTC ) and Ethereum ($ETH ) options contracts will expire. Although crypto markets have been showing signs of recovery in recent weeks with the so-called “Trump rally,” it remains uncertain whether this movement will continue. Options expiration generally increases market activity. Bitcoin’s pricing in the $100,000 band seems to fuel this activity.
Bitcoin Options: According to Deribit data, 20,815 Bitcoin contracts will expire today, and the total notional value of these contracts is $2.077 billion. The put-to-call ratio is 0.83, in short, traders are selling more long contracts. The maximum pain point, i.e. the price level where the most loss is experienced, has been determined as $98,000.
For Ethereum, a total of 164,330 contracts will expire today, with a total notional value of $644 million. The put-to-call ratio is 0.68, meaning traders tend to sell longer contracts, similar to Bitcoin.
Options market data from the last two weeks shows that market makers are more cautious. Analysts say that volatility could increase, especially in short-term price movements.
Market makers are raising expectations for a “Christmas rally” as the year approaches. However, BTC’s price is just below $100,000 and ETH’s price is just below $4,000, indicating that the market is struggling to overcome critical resistance points.
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