Today marks the expiration of approximately $2.4 billion in Bitcoin (BTC) and Ethereum (ETH) options contracts. Specifically, $1.39 billion worth of BTC options and $1 billion worth of ETH options are set to expire. The expiration comes after last week’s settlement of 96,000 contracts, making this tranche relatively smaller in comparison.
For Bitcoin, 23,367 contracts with a value of $1.39 billion are expiring today. The put-to-call ratio for Bitcoin is 0.50, and the maximum pain point, which is the price at which the asset would cause the greatest number of holders to suffer financial losses, is $61,000.
According to Greeks.live, a platform that provides insights into the crypto market, Bitcoin and the overall cryptocurrency market are currently experiencing a significant pullback. The volatility expectations in the market are decreasing rapidly. However, they suggest that short-term traders can consider buying options with lower implied volatility (IV) and price to capitalize on potential profitability.
In addition to Bitcoin options, there are almost 334,248 Ethereum contracts expiring today, with a notional value of around $1 billion. The put-to-call ratio for Ethereum is 0.36, and the maximum pain point is $3,000.
Despite the recent correction, the global cryptocurrency market has seen a 4% increase in the last 24 hours, pushing its total capitalization to $2.32 trillion, as reported by CoinGecko. Bitcoin has rebounded from a drop below $57,000 and is currently trading around $59,324, while Ethereum has seen a 1.5% increase, reaching $3,003.
It’s important to note that the expiration of options contracts typically has a short-term impact on the underlying assets’ prices. The market usually returns to its normal state the following day and compensates for any significant price deviations.