Today, a large amount of Bitcoin and Ethereum options worth $5.79 billion is set to expire. This includes $4.68 billion in Bitcoin options and $1.11 billion in Ethereum options. Traders are paying close attention to the put-to-call ratios and the max pain points.
For Bitcoin, the max pain point is much higher than its current price. This could lead options sellers to push prices up as the expiration date approaches. Ethereum faces a similar situation, with its maximum pain point also significantly above its market value, which may create upward pressure.
The upcoming expiration is likely to cause increased volatility in the market. Many traders are using defensive strategies, such as call ratio spreads. They believe Bitcoin might see erratic price movements and could test lower levels before establishing a clear direction. There is a strong sense of fear regarding further declines, as market sentiment is mostly bearish after a recent drop.
Institutional traders are mainly focused on monthly expiries. This focus could lead to greater liquidity and tighter spreads, which might significantly affect Bitcoin and Ethereum prices.
Since the expiration occurs at the end of the month, market makers are expected to try to align prices closer to the max pain levels due to the concentration of open interest. The market’s reaction to today’s expiration could provide important insights into the short-term behavior of Bitcoin and Ethereum, possibly leading to a volatile period ahead.
