A significant options expiry event is poised to inject volatility into the cryptocurrency markets today, with nearly $2.4 billion in Bitcoin and Ethereum contracts set to settle. This comes as the broader crypto market faces downward pressure, with total capitalization falling over 2% to around $2.27 trillion in the last 24 hours.
Bitcoin Options Expiry: Data from the Deribit exchange shows approximately 30,012 Bitcoin contracts are expiring, with a notional value of $2.00 billion. The put/call ratio stands at 0.59, indicating more traders hold bullish call options. The key level to watch is the "max pain" price of $70,000, a point where the most option buyers would incur losses. With Bitcoin trading near $67,772, a move toward this level could stabilize markets, while a drop below may increase bearish momentum.
Ethereum Options Expiry: Alongside Bitcoin, 205,585 Ethereum contracts worth about $404.5 million are expiring. The put/call ratio is 0.75, reflecting a slightly bullish sentiment. Ethereum's max pain price is $2,050, while its spot price hovers around $1,955, suggesting potential upward pressure as expiry approaches.
Analysts note that such expiry events often trigger short-term volatility as traders adjust positions. Last week's expiry of over $3 billion in contracts was followed by a rally, with Bitcoin rising nearly 4% and Ethereum gaining 5.4%. While this week's event is smaller, market sentiment and liquidity will ultimately determine the price direction. Concurrently, the market has seen about $168 million in liquidations in the past day, with Ethereum undergoing aggressive deleveraging, which may prime conditions for a sharp rebound if short positions are squeezed.
