Crypto markets will witness $1.10 billion worth of Bitcoin options contracts expiring today. This large expiration could cause a short-term price impact, especially after Bitcoin briefly dipped below $60,000. Additionally, $510.08 million worth of Ethereum options will expire. Amidst this wait, cryptocurrency traders are preparing for potential volatility.
Bitcoin and Ethereum are preparing to surge!
cryptokoin.comAs you follow from , the size of the waves in the market has increased recently. Some data indicate that this may continue. There is a significant increase in Bitcoin and Ethereum contracts expiring today compared to last week. According to data from Deribit, 18,271 Bitcoin option contracts will expire with a put/call ratio of 0.90. The maximum pain point for the leading cryptocurrency is $62,000.
Also regarding Ethereum, 212,175 contracts expire today. In options, the put/call ratio is 0.40. Moreover, the maximum pain point for the cryptocurrency is $2,450.
For Bitcoin, expiring options indicate an overall bullish trend after briefly falling below $60,000. The cryptocurrency, which has a maximum pain point of $62,000, is currently trading at $60,612. Additionally, usage remains well below strike. On the other hand, Ethereum is trading at $2,407. This is below the maximum pain point of $2,450. Crypto Town Hall analysts. “Pay attention to proportions and maximum pain levels. “These can tell us where the market is heading,” he says.
Both cryptocurrencies are trading below their maximum pain point
As Bitcoin and Ethereum options expire, both assets are expected to approach their respective strike prices. This is a consequence of Maximum Pain theory, which predicts that option prices will converge around strike prices where the largest number of contracts (both calls and puts) expire worthless. Large institutions, often referred to as smart money, typically sell these options. They have an incentive to push the price towards the “maximum pain” level by trading in the spot or futures markets. This strategy causes option buyers with counterparties to lose the most value.
Towards expiration, it is possible for both cryptocurrencies prices to trend towards these maximum pain points. However, the pressure on prices will decrease after the options expire. Currently, those who purchase put options on BTC and ETH appear poised to benefit. With the current market underperforming, option sellers will likely push prices upwards to cut their losses. An at-the-money put means the current asset price is below the strike price. It also allows owners to sell at a better price than the market is offering.
“A change in the cryptocurrency market is imminent!”
Analysts at Greeks.live advise investors to remain vigilant as this market shift could create new trading opportunities. Recent weakness in the sector is likely to create favorable conditions for strategic moves. Analysts also note that the recent recession in the market has led to Bitcoin showing flat implied volatility (IV). This situation is ideal for medium and long term calls from low levels. Additionally, block call trading has become increasingly active this week. In this context, analysts make the following statement:
As the crypto continues to weaken the $60,000 level and ETH approaches the long-term support line at $2,300, a reversal in the market could be imminent. The first two weeks of this year’s fourth quarter were weak; The options market is also more depressed. Current options position has fallen to the lowest level since 2023. But a stagnant market also creates new trading opportunities.
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