Over $10 Billion in Crypto Options Expiring Today: What It Means for Bitcoin and Ethereum
The crypto market will witness the US $ 10.31 billion in Bitcoin and Ethereum contracts today. This large -scale expiration may affect short -term price actions, especially because the two assets have recently declined.
Bitcoin option value is US $ 8.36 billion and Ethereum is US $ 1.94 billion. Traders are preparing for potential volatility.
High -risk cryptocurrency options expire: What should traders watch today
The options expired today are significantly increased because it expires at the end of the month. According to Deribit data, Bitcoin options expire for 80,179 contracts Last week 30,645 contractsEssence Similarly, Ethereum’s maturity options have a total of 603,426 contracts, which are higher than the 173,830 contracts last week.
The maximum pain price of these maturity Bitcoin options is $ 98,000, while the call ratio is 0.68. This shows that although the assets have recently recovered, it is generally a bullish mood. In contrast, the maximum pain price of the corresponding objects of Ethereum is $ 3,300, and the call ratio is 0.43, which reflects similar market prospects.
The reasonable ratio of Bitcoin and Ethereum below 1 shows that they are optimistic about the market, and more traders bet prices rose. However, due to market fluctuations in the expiration of options, analysts call for caution.
“As traders re -positioned before their expiration, when the price increases and potential liquidation, this may cause a large fluctuation of the market,” the popular user Crypto Dad on X. warnEssence
The warning is because the options usually lead to short -term price fluctuations, which will cause market uncertainty. At the same time, Beincrypto data shows that the transaction value of Bitcoin has dropped by 0.64 % to $ 104,299Essence On the other hand, the price of Ethereum rose 1.04 %, and now trading $ 3,226Essence
The meaning of options for the expiration of BTC and ETH
With the current price, Bitcoin’s maximum pain level is much higher than $ 98,000, and the strike price of Ethereum is less than $ 3,300. The maximum pain point or strike price is the key indicator of market behavior. It represents the value -free price level of most options.
Based on the maximum pain theory, the price of BTC and ETH may reach their own strike prices, so it is expected to fluctuate. Here, as these options approach the expiration, the most options (all calls and stations) will be worthless.
Objective buyers who lose all value will feel “pain”. On the other hand, as the contract expires, the options seller will benefit, and they make the obtained credit unable to sell options.
The reason why this happened was because the biggest pain theory was based on the assumptions of the selection author who is usually a large institution or professional trader, otherwise it is called Smart moneyEssence Therefore, they have resource and market influence and can push the closing price of the stock to the biggest pain point of the expiration date.
“Traders usually monitor this level because it will affect price changes as the expiration is approaching,” a analyst on X on X WriteEssence
Based on this assumption, these municipal merchants will hedge their own positions to maintain a gay -neutral investment portfolio. As their positions approach their expiration, they offset their short -term selection positions by selling or purchasing contracts, thereby affecting the price of the maximum pain point.
However, it is worth noting that as traders adapt to the new price environment, the market usually stabilizes. With the large number of expirations today, traders and investors can expect similar results and may affect the trend of the crypto market on the weekend.
Post More than 10 billion US dollars of cryptocurrency options expire today: What does it mean to Bitcoin and Ethereum First appear BeincryptoEssence
