The ongoing bullish sentiment in the crypto market seems to have an obstacle ahead as over $7.7 billion of Bitcoin and Ethereum expires today. The early impacts of this huge options expiration has already started raising tension with early Indian hour trading sessions showing high volatility.
According to data from Deribit, the current total open interest in Bitcoin (BTC) options is sitting at 89,005 – of which over 60% (54,090) accounts for Call options and 34,915 for Put options. The total notional value for today’s Bitcoin options market is $5.82 million. As the max pain price is $59,000 for Bitcoin, the market is expected to show a slight higher volatility in US trading sessions.
Similarly, Ethereum (ETH) options are also having one of the biggest expiry on 27 September with notional value of $1.91 billion. Having a put/call ratio of 0.46, the total open interest in ETH options is 716, 917 with the max pain price of $2,550 – as per Deribit data.
The combined notional value of over $7.7 billion at expiry for both these leading assets marks one of the largest since past few months.
Following the recent rate cut decision from the US Federal Reserve, Bitcoin price and the whole cryptocurrency market witnessed a wave of uptrend with BTC breaking $65,000 – up over 9% since the rate cut announcement.
The options expiry today could bring massive volatility in Bitcoin and Ethereum market prices with potentially being pulled around the max pain levels. While such huge amount of options are on the edge to expire, market players would probably try to fluctuate prices to minimize their loss or maximize profits.
Besides, we are also approaching the weekend which could make market recovery tedious or extend the downtrading even furthermore in case of a sudden dump. All said, now we have to see how the market reacts to this tense event with billions involved.
