Today, options for Bitcoin and Ethereum with a total value of approximately $2.5 billion are scheduled to expire, after a week of notable market volatility. Investors consider the expiration of these options to be essential as they evaluate the potential effects on market patterns.
Bitcoin options, with a total value of around $2 billion, have a significant price level known as the “maximum pain” level. This level is the price at which option holders would experience the most financial loss.
The put-to-call ratio of 0.71 signifies an optimistic sentiment, indicating that investors are inclined towards expecting price increases despite recent changes.
The Ethereum options market has a total value of over $550 million, with over 200,000 contracts. The put-to-call ratio stands at 0.95, suggesting a very even expectation for both price increases and decreases.
Greeks.live analysts have observed a substantial implied volatility (IV) of over 60% for major contracts, as well as a much greater 7-day realized volatility (RV) for Bitcoin.
This suggests a continued state of instability in the market as a result of recent fluctuations in prices. Bitcoin and Ethereum have demonstrated remarkable tenacity, swiftly rebounding in the market.
The expiration of these options may have a significant impact on market conditions, as the substantial number of expiring contracts could result in increased volatility and shifts in market sentiment.
