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Crypto market braces for $5B in Bitcoin and Ethereum options expiry

Crypto market braces for $5B in Bitcoin and Ethereum options expiry

GrafaGrafa2024/10/25 10:37
By:Isaac Francis

Traders are closely watching as over $5.26 billion worth of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) options expire, potentially affecting market volatility.  

Bitcoin options expiring total $4.25 billion, while Ethereum options account for $1.01 billion.  

According to Deribit data, the Bitcoin options’ maximum pain point stands at $64,000, with 62,657 contracts and a put-to-call ratio of 0.66.  

Ethereum options include 403,426 contracts with a put-to-call ratio of 0.97 and a max pain point of $2,600.  

The "max pain" point is significant as it represents the strike price where the largest number of contracts expire worthless.  

With Bitcoin’s current price above its max pain point, it suggests potential losses for holders of call options.  

Conversely, Ethereum remains below its max pain point, which could indicate an upward price movement in ETH as the contracts expire.  

According to analysts, this increased options volume marks a substantial rise from earlier in October, when the weekly expiries ranged between $1.4 billion and $1.62 billion.  

The leap to over $5 billion highlights growing market activity and expectations.  

Analysts at BloFin Academy stated, “The change in implied volatility first reflects the election’s impact on the expected volatility of the crypto market.  

Whether it is BTC or ETH options, the implied volatility level of options expiring on November 8 has increased significantly and exceeded that of far-month options.”  

BloFin Academy analysts also noted that “investors seem to believe that there will not be much volatility in the rest of October.  

As most investors are on the sidelines before the election, the performance of the crypto market is mainly consolidation, which also boosts investors’ confidence in pricing lower volatility.”

At the time of reporting, the Bitcoin price was $67,610.26, and the Ethereum price was $2,492.76.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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