The crypto market braces for volatility today as over $3.6 billion in crypto options are set to expire. Traders anticipate Bitcoin price and Ethereum to rally higher after this options expiry, breaking above key resistance levels if historical trends repeat.
$3.6 Billion in Bitcoin and Ethereum Options Expiry
Crypto options expiry typically brings a lot of volatility and sometimes a buy-the-dip opportunity, as in the present case. According to Deribit, over $3.6 billion in Bitcoin (BTC) and Ethereum (ETH) weekly options expire today at 8:00 AM UTC.
Over 27.5K BTC options with a notional value of $3 billion are set to expire. The max pain price is at $106K, giving market makers and traders room to bring down Bitcoin price to this level.
Moreover, the put-call ratio is higher at 1.06 at the time of writing. It suggests a bearish sentiment among traders as puts outpace calls. However, the put-call ratio is 0.54 in the last 24 hours.
As per Deribit, Today’s largest BTC block option trade was selling July-end 110,000 call options and buying 105,000 put options, totaling 600 BTC, earning a premium of $660,000. It would be profitable if BTC’s price at expiry is below $112,000, a common hedging strategy during a strong bull market to protect current high returns.
Besides, 237K ETH options with a notional value of $0.6 billion are expiring today. Also, the max pain price is at $2,500, indicating that selling pressure could rise on ETH as traders exit or get liquidated.
Moreover, the put-call ratio is significantly higher at 1.26 at the time of writing. It suggests a bearish sentiment among traders as puts dominate calls. The put-call ratio is 0.49 in the last 24 hours.
Bitcoin Price and Ethereum Could Face Selling Pressure?
Typically, price moves to the max pain price before crypto options expiry, but it’s not observed in some cases. However, it accurately predicts the sentiment and price direction.
Bitcoin price has started to dip in the past 24 hours, with the price currently trading at $108,940. The 24-hour low and high are $108,811 and $110,541, respectively. Furthermore, the trading volume has decreased by 13% in the last 24 hours, indicating a decline in interest among traders.
In contrast, Ethereum price pared earlier gains to fall nearly 2% in the last 24 hours. The 24-hour low and high are $2,553 and $2,635, respectively. Further, the trading volume in the past 24 hours has declined by 18%.
Also Read: Amber International Secures $25.5M to Buy XRP, BNB, SUI
