- BTC options had a max pain at $105K with $3.95B value
- ETH options expired with max pain at $3,475
- Combined expiry adds volatility to the crypto market
Friday witnessed a major event in the crypto derivatives market as over 41,000 BTC and 228,000 ETH options contracts expired. These expiries, amounting to a combined notional value of approximately $4.7 billion, are expected to influence short-term price volatility and market sentiment.
According to data from leading derivatives platforms, the Put-Call Ratio for Bitcoin (BTC) stood at 0.61, indicating more call options than puts, suggesting bullish sentiment among traders. The maximum pain point, the price at which most options expire worthless, was recorded at $105,000, far above BTC’s current trading range. This could point to long-term optimism or hedging strategies by institutional players.
ETH Expiry Adds to Market Movements
Ethereum (ETH) also saw a significant options expiry event. 228,000 contracts expired with a notional value of $730 million. The Put-Call Ratio for ETH stood at 0.59, reinforcing a similarly bullish tone in the options market. The maximum pain point for ETH was calculated at $3,475, another level higher than current spot prices.
These maximum pain levels often serve as key reference points for traders trying to predict market behavior around expiries. When actual prices diverge significantly from the max pain points, it can lead to increased volatility due to the closing or rolling over of positions.
What This Means for the Market
While options expiries don’t always lead to immediate price action, they often mark a shift in short-term sentiment. With billions of dollars in contracts expiring, both BTC and ETH may see increased trading activity as traders reposition themselves based on new technical and psychological levels.
The relatively low Put-Call Ratios for both assets indicate that a larger portion of traders were betting on upward price movement. Combined with the max pain points being higher than current market prices, this could potentially hint at a bullish outlook—provided macro conditions align.
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