The cryptocurrency market faces significant volatility as over $10 billion in Bitcoin and Ethereum options contracts are set to expire today. This expiration is expected to impact short-term price movements, drawing attention from traders and analysts alike. Approximately 80,000 Bitcoin options contracts, totaling around $8.36 billion, will expire, along with 603,400 Ethereum contracts worth $1.94 billion. Bitcoin’s “maximum pain” price is set at $98,000, while Ethereum’s stands at $3,300. Market Sentiment And Put-to-Call Ratios The put-to-call ratio for Bitcoin is 0.68, and for Ethereum, it’s 0.43. Both ratios suggest a […]
$10B Bitcoin, Ethereum Options Expiry Sparks Volatility
The cryptocurrency market faces significant volatility as over $10 billion in Bitcoin and Ethereum options contracts are set to expire today. This expiration is expected to impact short-term price movements, drawing attention from traders and analysts alike.
Approximately 80,000 Bitcoin options contracts, totaling around $8.36 billion, will expire, along with 603,400 Ethereum contracts worth $1.94 billion. Bitcoin’s “maximum pain” price is set at $98,000, while Ethereum’s stands at $3,300.
The put-to-call ratio for Bitcoin is 0.68, and for Ethereum, it’s 0.43. Both ratios suggest a generally bullish market sentiment, as values below one indicate more long positions than short ones. However, options expirations often cause market fluctuations, meaning this sentiment doesn’t guarantee stability.
Read More: Union Budget 2025: Markets To Remain Open During Nirmala Sitharaman’s Speech On Feb 1
After a brief dip below $100,000, Bitcoin rebounded and is now trading between $104,000 and $106,000. The highest open interest for Bitcoin options is at the $120,000 strike price, valued at $2.4 billion, followed by $1.65 billion in contracts at $110,000. This shows that traders expect potential upward movement, but options expiry may trigger volatility as positions are adjusted.
Ethereum’s price has been fluctuating around $3,200, having recently dropped to $3,000. While the put-to-call ratio of 0.43 suggests a bullish outlook, nearly 603,400 options contracts expiring today could lead to turbulence. The Ethereum MVRV ratio signals a potential price correction, adding uncertainty to the market.
In addition to the options expiration, the upcoming U.S. Personal Consumption Expenditures (PCE) index report could influence cryptocurrency volatility, though its effect is expected to be minor. The bigger catalyst may be next week’s U.S. labor market data, especially the unemployment rate, which could heavily impact Bitcoin’s price trajectory.
Crypto analyst Benjamin Cowen has pointed out that if the U.S. unemployment rate reaches 4.1% or 4.2%, Bitcoin may mirror past patterns and see gains in February and March. However, if the unemployment rate is higher, it could introduce more uncertainty, potentially stalling Bitcoin’s momentum.
Bitcoin’s current price stands at $104,500, reflecting stability post-FOMC. Ethereum is also holding steady, up by 1.67% at $3,244. However, the options expiry today is likely to introduce temporary volatility. Historically, such expirations are followed by a stabilization period as traders reposition their strategies.
The expiration of Bitcoin and Ethereum options contracts worth over $10 billion adds uncertainty to the market. While a bullish sentiment persists, short-term price swings are highly probable. Traders will closely monitor the aftermath of this event, as well as macroeconomic data, to adjust their positions and gauge future market direction.
Read More: Surge In Bitcoin ETF Inflows, Ether ETFs Show Recovery Signs
