Crypto Market Braces for $2.5 Billion Options Expiry Amid Recent Downturn
The cryptocurrency market is on edge as a $2.5 billion options expiry looms, following a significant market downturn. Explore the potential impact on Bitcoin, Ethereum, and other major assets as traders navigate this crucial period.
TechnicalAman 
- Bitcoin and Ethereum options totaling $2.5 billion expire today, following a volatile week.
- Bitcoin sees $1.94 billion in options expire, setting the maximum pain point at $60,000.
- Ethereum options involving 206,626 contracts worth $552 million are also set to expire.
Following Monday’s crypto market crash, approximately $2.5 billion in Bitcoin (BTC) and Ethereum (ETH) options are expiring today.
The expiration may influence market conditions, with investors monitoring potential shifts.
$2.5 Billion in Options Contracts Expiring: Will Crypto Markets Sustain Their Recovery?
According to Deribit, $1.94 billion in Bitcoin options are set to expire. The maximum pain point of these contracts stands at $60,000.
These options include 31,615 contracts, slightly fewer than last week’s 36,732. The put-to-call ratio of 0.71 indicates a general bullish sentiment despite the recent volatility.
Ethereum has $552.13 million in options expiring, involving 206,626 contracts. This figure is an increase from the previous week’s 183,756 contracts. The maximum pain point for these options is $2,950, and the put-to-call ratio is 0.95.
The maximum pain point in the crypto options market represents the price level that inflicts the most financial discomfort on option holders. Meanwhile, the put-to-call ratio indicates a higher prevalence of purchase options (calls) over sales options (puts).
Analysts from crypto options trading tool Greeks.live provided insights on today’s contract expiration. They noted that the implied volatility (IV) of all major terms remains high, exceeding 60%. Meanwhile, the current Bitcoin 7-day realized volatility (RV) is at 100%, far surpassing the IV level.
