Will It Spark Price Volatility?
More than $2.5 billion in Bitcoin and Ethereum options contracts will expire on Friday. In addition, U.S. economic data, including CPI and PPI, is still shifting from U.S. economic data, but can derivatives expiration activity push up prices today on the weekend?
Bitcoin (BTC) is well below the psychological level of $100,000 as the impact of macroeconomic events continues to drive sentiment.
Bitcoin and Ethereum options expire today
According to Deribit, approximately 21,362 Bitcoin option contracts will expire on Valentine’s Day on February 14. According to Deribit, the nominal value of the Bitcoin option contract expired this Friday is $2.07 billion. The view/call ratio is 0.66, which indicates the prevalence of purchase options (call) to sales options (PUTS).
As Bitcoin options expire, their maximum pain or blow price is $98,000, when assets will cause financial losses to the maximum number of holders.
Similarly, the cryptocurrency market will witness the expiration of 176,742 Ethereum contracts with a nominal value of $479 million. These expired Ethereum options have a proposed ratio of 0.64 and a maximum pain of $2,725.
The option expiration activity this week is much smaller than what the cryptocurrency market saw last Friday. As Beincrypto reported, Approximately $3.12 billion in BTC and ETH options expireattributed to US President Donald Trump’s tariffsmaldeveloped Bitcoin price is below $100,000
Option expiration may result in price volatilityso traders and investors need to closely monitor today’s development. However, Bitcoin and Ethereum increase ratio below 1 Options Trading Indicates optimism in the market. This shows that more and more traders are betting on price increases.
Greek Live commented that market sentiment remained weaker this week in the merger. Impressive volatility Despite a lot of positive news from the U.S. government, the lowest level in nearly a year has dropped to its lowest level. This suggests that expected price volatility may affect option pricing and trading strategies are lower.
“As BTC effectively falls below $100,000, the Options Professional has been selling short- and mid-term calls and a significant increase in block call volume, but the decline in Block Pot volume suggests that the market is not bullish. On the one hand, it’s as panicked as the negative side,” Greek. shared.
In this context, analysts are in Greek. Live said agencies view February as “trash time.” This means that a period of low market activity or interest may affect transaction volume and cryptocurrency market prices.
With the current 8:00 UTC option signing, Bitcoin and Ethereum prices may be close to their respective biggest pain points. According to Beincrypto data, BTC transactions $96,714and Eth exchanged $2,696.
This suggests that BTC and ETH prices may rise as Smart Money aims to shift it to the “maximum pain” level. According to the theory of greatest pain, option prices tend to tend to strike prices, with the highest number of contracts in calls and put options and no value when expiration occurs.
Price pressure BTC ETH may relax after 08:00 UTC when it settles its contract on Friday. However, these huge scales of maturity can still exacerbate volatility in the cryptocurrency market.
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