Bitcoin and Ethereum To Face $3 Billion in Options Expiry; How Will The Market React?
Today, more than $3 billion in Bitcoin and Ethereum options will expire. With $2.5 billion in BTC and nearly $500 million in ETH contracts settled, all eyes are focused on how these moves affect market prices. This expiration time is set at 8:00 UTC on Deribit, which may lead to increased volatility in the cryptocurrency market.
The “consolidation ratio” of 0.67 indicates that there are more PUT options than the call option (the price of BET BET BET CON COIN increases). The biggest pain point, i.e. the price that causes the holder’s biggest loss is $89,000.
In addition, a large number of contracts will expire on Ethereum, totaling US$481.9 million. Ethereum has a “maximum pain point” of $2,300, while the call ratio is 0.72. Both Bitcoin and Ethereum have less than 1 income ratios, meaning traders have more bets on price increases (buy phone calls) than on price declines (buy put options).
Bearish sentiment in the market
The overall sentiment in the crypto market is negative (bearish). Bitcoin’s recent price volatility (such as a $6,000 drop) has created a turbulent market where traders find it difficult to navigate, often suffering losses in both directions.
Analysts from Greek Note that traders focus on key price levels with resistance of around $87,000 to $89,000 and the most recent bottom is around $82,000, although there is a divergence in whether the bottom is sustainable. The market’s pessimism is obvious in the growing number of traders purchasing protection options (PUTS).
The market is currently volatile, and due to the risk of sudden price changes, traders focus on fast entry and exit. Factors such as trade policies and tariffs have increased uncertainty, making many traders cautious.
Bitcoin drops after Trump’s reserve announcement
After Bitcoin options expire, the price may be priced, but it will usually be sold soon. This was conducted on President Trump’s recent executive order on Bitcoin reserves, although many details remain unclear and are expected to be discussed at the White House crypto summit.
Contrary to expectations, Bitcoin fell 5% to $84,667 after President Trump’s Bitcoin reserve announcement, triggering a $261 million liquidation in the futures market.
Major summits
Bitcoin’s price has dropped by a major crypto summit, with the largest position in the long term. The liquidation rate reached $115.6 million, while BTC’s open interest fell by 5%. If the downtrend continues, BTC can test support for $85,357 and may drop to $80,580. However, if new demand raises prices, BTC could return above $90,000, possibly reaching $92,247.
