Today, over $3 billion in Bitcoin and Ethereum options are set to expire, leading to expected market volatility. Bitcoin’s key “max pain” level is at $89,000, while Ethereum’s is at $2,300. The expiration of these options is causing significant price fluctuations.
Bitcoin has about $2.5 billion in contracts expiring, and Ethereum has around $500 million. This event, happening at 8:00 UTC on Deribit, is likely to create wild movements in the cryptocurrency market.
The “max pain” points indicate where many option holders could face losses. Both Bitcoin and Ethereum have more buy options (calls) than sell options (puts), suggesting that traders are more optimistic about price increases. The current volatility is influenced by ongoing economic uncertainty and the large volume of options expiring, leading to sharp price swings.
Bitcoin has experienced notable intraday changes, with recent shifts of $6,000, frustrating traders. This erratic behavior makes it hard to identify a clear market trend. Analysts point out that Bitcoin’s resistance level is between $87,000 and $89,000, while $82,000 might be a temporary support level, though its sustainability is uncertain.
Market sentiment is generally bearish as traders prefer downside protection due to fears of further declines. Many are selling calls in the $89,000–$90,000 range, viewing it as a safer strategy amid the volatility. With the market’s high fluctuations, traders are focusing on short-term trades, quickly entering and exiting positions instead of holding them long-term.
External factors, like changing trade policies, add to the uncertainty, making traders cautious. They are waiting for clearer signals before making significant investments. After the options expiration, the market may stabilize, and any sharp price changes could be corrected.
