Crypto Market Braces for Volatility as $5.78B Bitcoin & Ethereum Options Expire
The cryptocurrency market is on edge as Bitcoin and Ethereum options worth $5.78 billion are set to expire today. This event could trigger significant market movements, adding to the recent volatility.
Bitcoin and Ethereum Face Heavy Price Swings
Since the start of the week, crypto prices have experienced sharp declines. Bitcoin and Ethereum, the two largest cryptocurrencies, have led the downturn, plummeting 18% and 24%, respectively. Now, with billions in options expiring, traders are bracing for potential price shifts.
$4.66 Billion in Bitcoin Options Expiring
According to data from Greeks. Live, 59,000 BTC options contracts, worth approximately $4.66 billion, are expiring today. These contracts have a put-call ratio of 0.7, indicating a balanced market sentiment. The max pain point stands at $96,000, significantly higher than Bitcoin’s current price. Market makers may attempt to push BTC prices closer to this level to minimize payouts.
Ethereum Options Worth $1.12 Billion Also Expiring
Similarly, 529,000 ETH options with a notional value of $1.12 billion are set to expire. These contracts carry a put-call ratio of 0.52, suggesting a slightly bullish outlook. The max pain point for Ethereum sits at $3,000, nearly 36% above its current price. This gap raises speculation about potential market moves to align with the pain point.
Market Volatility Surges Amid Global Economic Concerns
The expiration of these contracts comes at a time of heightened market volatility. Recent downturns in U.S. stocks and bonds have contributed to the uncertainty, with macroeconomic factors further intensifying the situation. Reports indicate that President Donald Trump’s tariff hike on major trade partners, including China, Canada, and Mexico, has fueled investor anxiety.
Short-Term Implied Volatility Spikes
Data from Greeks. Live reveals a surge in implied volatility (IV) for both Bitcoin and Ethereum. Earlier this week, Bitcoin’s short-term IV jumped to 90%, while Ethereum’s IV exceeded 100%, signaling extreme price fluctuations.
Bitcoin and Ethereum Show Signs of Recovery
Despite the chaos, Bitcoin has managed to reclaim $82,000, while Ethereum has bounced back to $2,170. Both cryptocurrencies are up 5% from their intraday lows of $78,179 and $2,073, respectively.
What’s Next?
As options contracts expire, traders and investors will closely watch market movements. If market makers influence prices toward max pain levels, a temporary price correction may occur. However, the broader trend remains uncertain amid ongoing economic and geopolitical pressures.
Conclusion
The crypto market is at a critical juncture, with billions in expiring options potentially influencing short-term price action. Investors should stay alert, monitor market trends, and exercise caution amid ongoing volatility.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your research before making investment decisions.
