$5.26 Bln in Bitcoin and Ethereum Options Set to Expire: Is a Short-Term Price Drop Coming?

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The cryptocurrency market is bracing for potential short-term volatility this week, as a massive $5.26 billion in Bitcoin (BTC) and Ethereum (ETH) options contracts are set to expire today. With $4.2 billion in Bitcoin options and $1 billion in Ethereum options expiring on Deribit, many traders are keenly watching how this will impact prices, especially with Bitcoin struggling to break the $69,000 resistance level.

$5.2 B BTC, ETH Expiring Today 

According to data from Deribit, today marks the expiration of about 62,600 Bitcoin options contracts, with a notional value of approximately $4.26 billion. Notably, a significant portion of these contracts are “in-the-money” (ITM) calls, meaning their strike prices are below the current market rate. 

In contrast, Bitcoin’s put-to-call ratio stands at 0.66, indicating more calls than puts, with a maximum pain point resting at $64,000.

On the Ethereum side, about 403,000 options are expiring, valued at around $1 billion. With a put/call ratio of 0.97, this indicates a nearly balanced sentiment among traders. Overall, today’s options expiry amounts to around $5.3 billion for the week.

Current Market Outlook

Meanwhile, the open interest (OI), which represents the total number of outstanding options contracts, remains high at the $70,000 strike price, exceeding $1 billion. Additionally, there is an impressive $1.2 billion in OI at the $80,000 strike price, signaling that some traders are optimistic about continued market momentum.

Earlier this week, Bitcoin futures OI also reached record highs, topping $40 billion, according to Coinglass. However, recent market pullbacks have flushed some of this leverage out.

Experts from Greeks Live noted that Bitcoin’s dominance in the options market has returned to levels last seen in 2021, largely due to Ethereum’s current weakness. They indicated that options market indicators are now primarily focused on Bitcoin data.

As the cryptocurrency landscape evolves, market dynamics are also being shaped by upcoming events like the U.S. presidential election.