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$2.7 Billion in Bitcoin and Ethereum Expired: What's Next?
U.Today
$2.7 Billion in Bitcoin and Ethereum Expired: What\'s Next?
BTC/USD
-0.34%
ETH/USD
-0.53%
U.Today - Significant options contracts for Ethereum and Bitcoin have expired, adding up to a whopping $2.7 billion in notional value on the cryptocurrency market In the days ahead, traders and investors may realign their positions, which could lead to price fluctuations. A total of 21,000 options contracts for Bitcoin ended with a put/call ratio of 0.83.
At $98,000, option holders experienced the maximum pain point, or the price at which they suffered the greatest losses. This is quite consistent with the recent price consolidation of Bitcoin around the psychological level of $100,000. The price chart indicates that bullish momentum is still present because Bitcoin is still trading above important support levels, such as the 50 EMA.
But the trading volume seems to have tapered off a little, probably because the holidays traditionally bring lower market activity in the U.S. and Europe. Although there may be another test of support around $95,000, a breakout above $102,000 might rekindle optimism. A total of 164,000 options contracts for Ethereum with a Put/Call Ratio of 0.68 and a maximum pain point of $3,700 expired.
The price chart for Ethereum shows a consistent recovery from the 26 EMA, indicating that buyers are entering at pivotal points. The fact that ETH has recovered from recent declines despite the expiration indicates rising demand. The holiday season's reduced trading activity, however, may limit price movements to the $3,500-$3,900 range for the time being. Markets have historically seen brief volatility following options expirations, as traders liquidate or modify their positions.