The crypto market is preparing for increased volatility ahead of the expiry of $2.25 billion in Bitcoin (BTC) and Ethereum (ETH) options today.
consists of $1.98 billion of Bitcoin options with Max Pain price of $82k while $271 million of Ethereum options at Max Pain price of $1,600 – as per market data provided by Deribit. At the time of writing, the total open interest for BTC stands at 23,349 while it is 169,217 for ETH.
The put/call ratio of 0.92 means that more purchase options (calls) are bought than sales options (puts), suggesting traders were expecting price for both the assets to increase. This ratio represents overall optimism in the crypto market.
At the time of writing, Bitcoin is trading near $84,558 while ETH price is hovering around $1,584 – as per Coinmarketcap data.
While speaking on options expiry, a popular crypto analyst notes that the cryptocurrency market is on high alert and this could lead to significant price swings.
“The expiration of these options contracts is anticipated to influence market dynamics significantly,” said the analyst, adding “Historically, such expirations can lead to increased volatility as traders adjust their positions.”
While the U.S. and global stock markets will be closed today in observance of Good Friday, the expiry of such a large amount in BTC and ETH options poses risk for increased volatility in the crypto market.
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