Bitcoin and Ethereum Options Worth $5.6 Billion Approaching Expiration

Bitcoin and Ethereum- Upcoming Expiration of $5.6 Billion in Bitcoin and Ethereum Options

Bitcoin and Ethereum– Today marks a significant expiration event in the crypto market, with approximately $5.65 billion worth of Bitcoin (BTC) and Ethereum (ETH) options set to expire. This massive expiration is anticipated to introduce considerable volatility.

For Bitcoin, 61,320 contracts, valued at around $4.07 billion, are set to expire, according to data from Deribit. This represents a substantial increase from the previous week’s 20,679 contracts. The current put-to-call ratio for Bitcoin stands at 0.61, with the maximum pain point—where option holders face the most financial discomfort—at $63,000.

Major Expiration of Bitcoin and Ethereum Options Today

Ethereum options are also seeing notable expirations today. A total of 499,803 contracts, valued at over $1.59 billion, are expiring. The put-to-call ratio for Ethereum is 0.46, with a maximum pain point of $3,300. This ratio indicates a higher number of call options relative to put options, suggesting a generally optimistic market sentiment among traders.

The concept of the maximum pain point represents the price level that causes the greatest financial strain on option holders. A lower put-to-call ratio reflects a preference for buying options rather than selling them, reinforcing the current positive sentiment.

Additionally, the recent launch of spot Ethereum exchange-traded funds (ETFs) in the US has sparked further interest and market activity. Analysts at Deribit have noted that factors such as the Mt. Gox distribution, ETF outflows, and recent dips in the Nasdaq are influencing current market trends. Adam, a market analyst, also highlighted the potential impact of external factors, including Donald Trump’s policy moves, on the market. He emphasized the importance of using a calendar spread strategy and selecting the right implied volatility (IV) to optimize trading positions.

In recent price movements, Bitcoin briefly dipped to $64,000 on July 25 but has since rebounded to $66,404. Ethereum saw a drop from $3,469 on July 24 to $3,098 but has recovered slightly, now trading at $3,183.

For the latest in crypto updates, keep tabs on Crypto Data Space.