How options expiration will affect BTC and ETH
A huge number of Bitcoin (BTC) and Ethereum (ETH) options are set to expire today, potentially influencing the prices of these leading crypto assets. This expiration marks the end of H1 2024 and is historically the second largest in financial markets.
The expiring contracts represent $1.04 billion in BTC and $501.1 million in #ETH🔥🔥🔥🔥 . BTC's put/call ratio is 0.71, indicating a previously bullish sentiment while ETH's put/call ratio is 0.73, also suggesting prior optimism.
The current #BTC☀ maximum pain point is $57,000, while ETH's is $3,350. Short-term implied volatility for BTC has increased by 10% as recent market indicators suggest a shift towards bearish sentiment.
Bitcoin price has dropped below $55,000, trading at $54,516 with a 24-hour decline of 7.4% while ETH has fallen below $3,000, reaching around $2,800.
Some of the factors contributing to the downturn include #Mt.GOX exchange beginning payouts and the German government selling its crypto assets.
While options expiration can cause short-term price volatility, its effects typically normalize within a day. Traders remain cautious of potential price fluctuations during this period, as increased volatility may impact trading strategies and trigger stop-loss orders.
The Bitcoin Fear & Greed Index fell to 29 from yesterday's 44, signaling more fear and uncertainty in the markets. Social data from Santiment shows the markets haven't been this fearful in Bitcoin's history.
https://x.com/santimentfeed/status/1809070048805597612
The market's reaction to options expiration, combined with current news events, will likely shape short-term price movements for both BTC and ETH. However, long-term trends are generally determined by broader market factors beyond options expiration events.
