The crypto market is gearing up for a day of potential turbulence as $3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire today. These expirations often spark sudden price swings, and the tension is already building. Bitcoin has dropped nearly 5% in a single day, falling from its all-time high to $98K, while Ethereum has slipped to $3,890.
Bitcoin: $2.29 Billion Options Set to Expire
Data from Deribit shows that 23,481 Bitcoin contracts, valued at approximately $2.29 billion, are expiring today. The put-to-call ratio for Bitcoin stands at 1.11, suggesting a slightly bearish sentiment. The maximum pain point, the level at which most options expire worthless, is at $97,000.
Bitcoin has already seen a sharp drop, falling nearly 5% to $98,000, down from its recent all-time high of $100,000. Analysts from Greeks.live commented on this volatility, highlighting the resilience of the crypto market.
However, Bitcoin’s rise to $103,000 is incredible, but the recent sharp drop cleared out many leveraged positions. Still, the overall market is strong, and sentiment remains positive with solid buying in the spot market.
Despite this optimism, high funding rates for leveraged contracts show that traders may have overextended their bullish bets. This raises concerns about more possible pullbacks.
Ethereum: $585 Million in Contracts Expiring
Ethereum is also facing significant expirations, with 148,733 contracts worth around $585 million set to expire. Unlike Bitcoin, Ethereum’s put-to-call ratio is 0.55, indicating a more bullish sentiment. The maximum pain point for Ethereum stands at $3,500, slightly below its current price of $3,890.
Ethereum’s lower put-to-call ratio suggests that traders are more optimistic about its price recovery compared to Bitcoin. However, the impact of these expirations on both assets is expected to be short-term.
What’s Next for Bitcoin and Ethereum?
As these massive options contracts expire, prices may move toward their maximum pain levels, causing temporary volatility. However, traders should note that the influence of these expirations is often brief, and broader market trends will likely dominate in the coming days.
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