As $4.3 billion in options are set to expire, traders in the cryptocurrency market expect significant volatility which may impact Bitcoin and Ethereum prices.
Expectations for Bitcoin Options
28,000 Bitcoin options with a notional value of $3.32 billion will expire on the largest derivatives exchange, Deribit. The put-call ratio stood at 1.31, indicating a bearish sentiment among traders. The max pain price for Bitcoin is $113,000, lower than the current market price of $115,016, implying a high chance of price pullback.
Outlook for Ethereum Post-Expiry
185,000 Ethereum options worth nearly $0.85 billion are set to expire. The put-call ratio was 1.02, signaling a bearish sentiment as puts dominated calls. Traders are focusing on a key resistance level of $4,700 ahead of the expiry.
Current Market Situation
Currently, Bitcoin is trading at $115,037, showing a 1% rise, while trading volume has increased by 5% over the last 24 hours. Ethereum has also recorded a 2% increase, trading at $4,512. The market is expected to remain volatile due to upcoming changes in the Federal Reserve's interest rate next week.
Overall, the expiration of $4.3 billion in options may significantly impact the price movements of Bitcoin and Ethereum, leading to increased volatility in the cryptocurrency market, requiring traders to stay alert.
