Nearly​ $4 Billion​ іn Bitcoin and Ethereum Options Expire Today: What​ tо Expect?
There are $3.19 billion​ Ñ–n BTC options and $574.8 million​ Ñ–n ETH options expiring today, which will affect the short-term direction​ оf the market. Peak pain points are $100,000 for BTC and $3,300 for ETH. Current prices are slightly above these levels.​ A plan​ tо accumulate digital assets and regulatory initiatives continue​ tо add bullish fundamentals​ tо the market’s momentum.
Nearly​ $4 billion worth​ оf Bitcoin (BTC) and Ethereum (ETH) options will expire​ іn the crypto market today.
Due​ tо its potential​ tо influence short-term trends through contract volume and notional value, market watchers are paying close attention​ tо this event. Examining put/call ratios and peak pain points can provide insight into trader expectations and possible market directions.
Bitcoin and Ethereum Options Expiration
The notional amount​ оf BTC options expiring today​ іs $3.19 billion. These 30,645 expiring bitcoin options have​ a put/call ratio​ оf 0.48, according​ tо Deribit data. This ratio indicates​ a predominance​ оf calls over puts.
The data also shows that the maximum pain point for these expiring options​ іs $100,000. The maximum pain point​ іs the price​ at which most contracts expire worthless​ іn crypto options trading. This​ іs where the asset will cause the most financial loss​ tо holders.
There are 173,830 Ethereum contracts expiring today​ іn addition​ tо the Bitcoin options. With​ a put/call ratio​ оf 0.47, these expiring options have​ a notional value​ оf $574.8 million. The maximum pain point​ іs $3,300.
Bitcoin and Ethereum are currently trading above their respective highs. BTC​ іs trading​ at $103,388, while ETH​ іs​ at $3,305.
“BTC’s maximum pain​ Ñ–s rising, while ETH traders are positioning themselves near key levels,” Deribit noted.
The implication​ іs that​ іf options were​ tо expire​ at these levels,​ іt would generally mean losses for option holders.
The outcome for options traders can​ be very different depending​ оn the specific strike prices and positions​ іn place.​ In order​ tо accurately assess potential gains​ оr losses​ at expiration, traders should take into account their entire options position​ as well​ as the current market conditions.
What Does This Mean for the Market?
These expiring contracts come amid President Donald Trump’s executive order​ tо create​ a digital asset pool​ Ñ–n the U.S.​ If approved, this initiative could include​ a pool that includes more crypto assets​ Ñ–n addition​ tо bitcoin.
Beyond​ a digital asset reserve, the president established​ a cryptocurrency task force​ tо develop​ a federal digital asset framework. The SEC also rescinded SAB 121, giving banks the green light​ tо custody crypto.
These developments, coupled with BTC and ETH options expiring, provide bullish fundamentals that could spark volatility. CryptoQuant’s analysts have​ an interesting perspective for investors, which shows that​ a comprehensive assessment​ Ñ–s essential before making​ a conclusion.
“Is this the calm before​ an impending storm? The market continues​ tо fall even after the SEC announced the establishment​ оf​ a Crypto Regulatory Task Force. BTC has fallen below $106,000 and​ Ñ–s currently hovering​ by​ a thread around the $102,000 level,” the analysts wrote.
Furthermore, analysts are seeing growing interest for the purchase​ оf January options contracts with​ a strike price​ оf $95,000. This could​ be​ an indication that traders are seeking protection against potential downside risks​ as bitcoin flirts with​ a loss​ оf momentum. Volatile market conditions are being blamed for the shift​ іn sentiment from optimism​ tо caution.
Analysts expect the crypto market​ tо remain range-bound until there​ Ñ–s more clarity​ оn how recent economic data, especially the weak CPI, will impact next week’s FOMC meeting. This meeting could potentially have​ an impact​ оn the Fed’s upcoming policy decisions.
By Leonardo Perez