The cryptocurrency market is on high alert as nearly $3.7 billion in Bitcoin options are set to expire on November 8. This massive expiration transaction exceeds last week's trading volume, occurring after a series of recent events, including the U.S. elections and the Federal Open Market Committee (FOMC) meeting. Such large-scale options expirations often trigger significant sell-offs.
$3.7 billion in Bitcoin options expiring
Deribit's latest data shows that about 48,794 Bitcoin options contracts worth approximately $3.7 billion will expire today. However, the put/call ratio for these contracts is 0.72, indicating a relatively balanced ratio of bearish and bullish positions.
Additionally, the maximum pain point, or the price level at which most options will expire worthless, is set around $69,000.
A significant amount of open interest (OI) is concentrated around the $80,000 strike price, totaling $1.7 billion, indicating that some traders are optimistic about a potential price increase.
Following the announcement of election results, driven by Trump's victory, trading volume surged to a record $60 billion per day. Subsequently, BTC reached an all-time high (ATH) of $76,940, reflecting positive market sentiment.
Analysts hint at potential profit-taking
Cryptocurrency derivatives platform Greeks Live has noted a trend of profit-taking in the options market, suggesting that the election-driven rebound may be nearing its end.
Furthermore, the platform reports a decrease in 'doomsday' Bitcoin options, which allow investors to exit contracts early, reflecting a shift in market sentiment towards a more optimistic outlook.
Ethereum options are also set to expire soon.
In addition to the massive expiration of Bitcoin, about 294,000 Ethereum options contracts worth $850 million are expiring today. The put/call ratio for these contracts is 0.65, with the maximum pain level set at $2,500.
Overall, the total expiration of Bitcoin and Ethereum options today is close to $4.5 billion.
Meanwhile, Bitcoin and Ethereum reached new highs of $76,872 and $2,950 respectively. While some altcoins have cooled off after the recent rebound, Solana (SOL) and Cardano (ADA) continued to rise, gaining 5% and 14% respectively.
