As of today, options contracts for Bitcoin (BTC) and Ethereum (ETH) valued at $3 billion are set to expire. These expirations typically trigger heightened market activity, with traders closely monitoring potential price fluctuations.
Currently, Bitcoin is trading at $100,073, while Ethereum is priced at $3,881.12, based on data from Coingecko.
Upcoming Expiry of $2.1 Billion in Bitcoin Options
The impending expiry of Bitcoin options worth $2.1 billion is on the horizon. The put-call ratio indicates a preference for call options (bullish bets) over puts (bearish bets) at 0.83.
The max pain point, where most options are likely to expire worthless, is identified at $98,000.
With Bitcoin’s market capitalization standing at $1.98 trillion and a circulating supply of 20 million coins, traders are keeping a close eye on its next market moves.
Bitcoin’s 24-hour trading volume has surged to $94.48 billion, hinting at heightened activity leading up to the expiration.
$640 Million Worth of Ethereum Options Reaching Expiry
An estimated $640 million worth of Ethereum options are nearing expiry, reflecting a put-call ratio of 0.68, suggesting a stronger bullish sentiment compared to Bitcoin. The max pain point for Ethereum is identified at $3,700, a crucial level being closely monitored by traders.
Over the last 24 hours, Ethereum has had a trading volume of $44.47 billion, with a market cap of $467.65 billion and a circulating supply of 120 million ETH.
Despite experiencing a minor 0.63% price drop in the past day, Ethereum’s week-over-week performance remains stable, indicating cautious trading sentiment among investors.
Adjustments in Market Maker Positions Amid Decreased Liquidity
Market makers are reportedly adjusting their positions during the expiration period, coinciding with reduced trading volumes typically witnessed during the holiday season.
Analysts have observed an increase in Implied Volatility (IV), suggesting preparations for more pronounced price swings. Experts at Greeks.live have noted that lower liquidity during holidays often amplifies market volatility.
Furthermore, they have underlined the growing correlation between cryptocurrency prices and movements in the U.S. stock markets, implying that fluctuations in equities could impact the crypto sector.
Complexity Added by Economic Data Trends
The expiration of these options follows a week of notable economic events in the U.S., including a rise in November’s inflation rate to 2.7%, with core CPI at 0.3%, pointing to persistent inflationary pressures.
While a Federal Reserve interest rate cut is anticipated, concerns linger about whether inflation could delay the easing process.
Given these economic indicators and the expiration of billions in crypto options, the market is poised for increased activity and potential fluctuations.