The cryptocurrency market is bracing for potential volatility as $7.7 billion worth of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) options expire today.
According to Deribit, 89,037 Bitcoin options contracts, worth $5.8 billion in notional value, and 719,130 Ethereum options contracts, valued at $1.9 billion, are set to expire.
This expiration could have a significant impact on market prices.
Bitcoin’s maximum pain point—where most traders experience the highest losses—stands at $59,000, while Ethereum’s maximum pain point is $2,500.
The put-to-call ratio for Bitcoin options is 0.64, indicating a relatively balanced market, with a slight bullish sentiment favoring call options.
Ethereum’s put-to-call ratio is lower, at 0.47, suggesting even stronger bullish sentiment.
As these options contracts expire, there is a high likelihood of price volatility, with traders closely watching whether Bitcoin and Ethereum prices hover around these key levels or shift dramatically.
The expiration of these contracts follows a three-week market rally fueled by the U.S. Federal Reserve’s 50-basis-point rate cut, which boosted confidence in the crypto market.
According to analysts at Greeks.live, the broader market outlook remains positive heading into the fourth quarter, which is traditionally strong for crypto assets.
They highlighted the upcoming U.S. election and further potential rate cuts as additional factors that could influence the market.
Despite the positive momentum, traders are advised to remain cautious, as options expirations historically lead to short-term market instability.
The next few days will be crucial in determining whether Bitcoin and Ethereum can sustain their upward trends or if a price correction is imminent.
At press time, the Bitcoin price was $65,296.47, and the Ethereum price was $2,644.50.