The post $4.26 Billion in Bitcoin and Ethereum Options Expires Today: What’s Next for Crypto? appeared first on Coinpedia Fintech News
Today marks a key event for the crypto market: nearly $4.26 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire. This massive expiration is expected to trigger significant market movement, creating potential volatility as traders and investors prepare for a busy day.
Bitcoin Options Expiring: $3.36 Billion at Stake
A large portion of the expirations comes from Bitcoin options. According to Deribit, over 217,000 Bitcoin contracts, valued at approximately $3.36 billion, are set to settle today. With a put-to-call ratio of 0.60, there are more long positions (calls) than short ones (puts), indicating overall bullish sentiment.
However, the maximum pain point for Bitcoin stands at $98,000, which is slightly below the current spot price of $99,758. While Bitcoin’s recent rise to $103,000 was notable, a recent price dip has caused liquidations of many leveraged positions.
Still, solid buying activity in the spot market suggests optimism, though high funding rates for leveraged positions could lead to potential pullbacks.
$900 Million Ethereum Options Expiring
Ethereum also has a big expiration today, with over 1.7 million contracts worth around $900 million set to expire. Interestingly, Ethereum traders appear more bullish than Bitcoin traders, with a put-to-call ratio of 0.46.
However, the max pain point is at $3,700, which mark is crucial for both bulls and bears, as it will likely determine the next price direction for ETH.
Is the Christmas Rally Coming?
With options expiring, traders are now wondering if a rally could take place before Christmas. The market shows Bitcoin and Ethereum moving in different directions, with Bitcoin holding below $100,000 and Ethereum staying just under $4,000.
The next few days could be crucial, as traders adjust their positions and prepare for the end of the year.