Today, $3.42 billion worth of Bitcoin and Ethereum options contracts are expiring in the crypto markets. This big expiration, combined with Bitcoin’s price approaching $100,000, could lead to short-term price action. Cryptocurrency traders are watching closely to be prepared for potential price swings.$BTC
As Bitcoin approaches $100,000, there is some anxiety in the market. Today, there was a significant increase in Bitcoin and Ethereum option contracts. According to Deribit data, 28,905 Bitcoin option contracts will expire today, and their put/call ratio is set at 1.09. In addition, the maximum pain point is $86,000. On the Ethereum side, 164,687 contracts will expire, and the put/call ratio is measured as 0.66, and its maximum pain point is $3,050.
Bitcoin’s put/call ratio is hovering above 1, indicating a general lack of optimism in the market and more investors betting on a price drop. Ethereum, on the other hand, signals a more positive market outlook, as its put/call ratio is 0.66, indicating that most investors are betting on a price increase.
The put/call ratio is an indicator that measures market sentiment. Put options are bets on a price decrease, while call options are bets on a price increase. A ratio above 1 indicates a negative sentiment in the market and an expectation of further declines, while a ratio below 1 reflects optimism.
As the options approach expiration, investors are expecting Bitcoin prices to fall while Ethereum is expected to rise. According to the Maximum Pain Theory, Bitcoin and Ethereum could fall to $86,000 and $3,050, respectively. At these price levels, most options contracts would become worthless. After Deribit closes the contracts today, price pressure is expected to ease for both assets.
According to current data, Bitcoin is traded at $99,110, while Ethereum is trading at $3,378. Analysts state that, in line with the indicators of put/call ratios, the price of Ethereum may make an upward move. In addition, it is predicted that Bitcoin may be close to correction, but the market rally prevents this pullback.
The big rally in Ethereum, with 8% of options positions expiring this week, has led to a significant increase in Ethereum’s large-term options implied volatility (IV), while Bitcoin’s IV has remained relatively stable. This suggests that market sentiment remains extremely optimistic. Analysts say Bitcoin is at risk of a correction, but strong spot bull markets and capital inflows, such as ETFs and BlackRock’s IBIT options in particular, are preventing this potential pullback.
