These Are Tough Times for Those Two Cryptocurrencies: Here's What Will Happen?

The fog of uncertainty in the market has not fully lifted. According to data from Deribit, Bitcoin options expiration today includes 19,885 contracts, compared to 88,537 contracts last week. Similarly, Ethereum's expiring options total 205,724 contracts, compared to 796,021 contracts the previous week. The disparity stems from last week's contracts, when year-end options expired.

For #Bitcoin , the maximum pain point (strike price) of expiring options is $97,000. In addition, the put/call ratio is 0.69. This shows that the leading cryptocurrency is generally on the rise despite its ongoing struggle to reclaim the $100,000 milestone. In contrast, the maximum pain price of Ethereum contracts expiring today is $3,400. In addition, the out/call ratio is 0.81. This reflects a similar market outlook to Bitcoin. When the put/call ratio is below 1, more traders are betting on price increases.

In options trading, the strike price is often a very important metric that drives market behavior. It represents the price level at which most options expire worthless. Moreover, when options expire worthless, they cause traders the maximum financial “pain”. Options expiration often causes short-term price fluctuations, creating uncertainty in the market. Therefore, it is useful for traders and investors to be prepared for volatility. In particular, the price of the asset tends to move towards the price in order to optimize profits for option sellers, who in most cases are large financial institutions of the smart money.

According to the latest data, $BTC was trading at $96,494 at the time of writing. $ETH was changing hands at $3,437. Therefore, moving towards the relevant strike prices implies a modest increase in value for Bitcoin. It also indicates a slight decrease in the price of Ethereum. Therefore, this also implies potential volatility.