$2.27 Billion Bitcoin, Ether Options Expire: Price Volatility Looms
Cryptocurrency markets expect $2.27 billion in Bitcoin and Ethereum options to expire today, a development that could trigger a short-term price increase volatility and affects traders’ profitability.
Among them, Bitcoin (BTC) options accounted for $1.81 billion, while Ethereum (ETH) options accounted for $459 million.
Bitcoin and Ethereum holders brace for volatility
According to Deribit data, 19,364 Bitcoin options will expire today, slightly lower than the opening price of the year, of which 19,885 BTC contracts went bankrupt last week. The options contract expiring today has a put-to-call ratio of 0.65 and a maximum pain point of $97,000.
Although the Vanguard cryptocurrency continues to fall away from the $100,000 mark, the put to call ratio points to a general bullish sentiment.
141,185 Ethereum options are also set to expire today, down from 205,724 in the first week of 2025. The put-to-call ratio is 0.48, and the maximum pain point is $3,450, which may affect the short-term price trend of ETH at expiration.
As options contracts approach expiration today at 8:00 UTC, Bitcoin and Ethereum prices are expected to approach their respective maximum pain points. According to BeInCrypto data, BTC is trading at $93,792 USD As of this writing, ETH is changing hands $3,258.
This suggests that prices are likely to rise as smart money aims to push prices towards “maximum pain” levels. According to the maximum pain theory, option prices tend to move toward a strike price at which the greatest number of contracts (whether calls or puts) expire worthless.
Price pressure on BTC and ETH may ease somewhat when Deribit settles contracts after 08:00 UTC on Friday. However, the sheer size of these expirations could still exacerbate volatility in the cryptocurrency market.
“Is this a breakout or another consolidation,” Deribit strike a pose In a post on X (Twitter).
Meanwhile, analysts remain divided on the next directional deviation for Bitcoin’s price. While some are hoping for further gains, others are betting on a fall if support around $92,000 is broken. Glassnode, on the other hand, points to weakening short-term demand momentum in the market.
“Bitcoin’s short-term demand momentum continues to weaken. One key indicator: Hot Capital (recovering capital over the past seven days) has plummeted 66.7% to $32 billion from a peak of $96.2 billion on December 12,” Glassnode wrote.
Popular capital indicators typically measure short-term trading activity and liquidity. This drop represents a sharp decline in speculative activity. Traders who were previously actively moving Bitcoin have retreated, indicating waning confidence or interest in short-term trading opportunities. As less capital is actively circulating, Bitcoin’s overall liquidity may decrease.
This makes it more challenging to place large trades without affecting the price, potentially leading to increased volatility. Such a large plunge (from $96.2 billion to $32 billion) may reflect broader bearish sentiment. factors like Macroeconomic uncertaintytighten monetary policyand even regulatory developments could cause short-term traders to retreat.
The decline in popular funds may indicate that traders are waiting on the sidelines, waiting for clearer market direction. This lower demand momentum could impact Bitcoin’s ability to sustain or rebound from current price levels. No New capital or increased activitydownward pressure on prices may increase.
Disclaimer
follow trust project BeInCrypto is committed to fair and transparent reporting. This news article is designed to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on the content of this article. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
