⌛ BTC and ETH options will expire today. How will this affect the price of the assets?
Options are derivative contracts that allow traders to buy or sell an asset at a specific price on a specific expiration date.
The notional value of the expiring 69,179 BTC contracts and 908,754 ETH contracts is $4.7 billion and $3.4 billion, respectively.
According to Deribit, the put/call options ratio on BTC is holding at 0.61. This means that traders are still bullish, and the number of calls, or long contracts, outnumber puts, or short contracts.
Predicting how the market will behave on the day of expiration of a large number of contracts is difficult - especially if there are events that affect the news background.
Nevertheless, traders should keep a close eye on the situation so that increased volatility does not lead to unwanted stop loss triggers.
The impact of option expiration on the price of the underlying asset is short-term. As a rule, the next day the market will return to its normal state and strong price deviations will be compensated.