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The Crypto Market Prepares for $1.62 Billion Bitcoin and Ethereum Options Expiry Today
Bitcoin and Ethereum Options Contracts Set to Expire
Traders in the crypto market are gearing up for a major event today as $1.62 billion worth of Bitcoin and Ethereum options contracts are due to expire. This significant volume of expiring contracts has the potential to introduce short-term price volatility, impacting the profitability of traders.
Bitcoin Options Expiry
Today, Bitcoin options valued at $1.25 billion are set to expire, with a total of 18,583 contracts on the line. This number is slightly higher than the previous week’s total. The put-to-call ratio for these contracts stands at 0.86, with a maximum pain point of $64,000 looming.
Ethereum Options Expiry
On the Ethereum side, $367 million worth of options contracts are set to expire today. A total of 140,320 contracts are on the verge of expiration, with a put-to-call ratio of 0.62 and a maximum pain point of $2,500.
As the expiry time approaches, traders are watching closely as Bitcoin and Ethereum prices are expected to gravitate towards their respective maximum pain points. This movement is based on the Max Pain theory, which predicts that options prices will converge around strike prices where the largest number of contracts expire as worthless.
The pressure on BTC and ETH prices might ease post-expiry as Deribit settles the contracts after 08:00 UTC on Friday.
Market Sentiment and Influences
Analysts are keeping a close eye on the market for a possible push that could see Bitcoin reclaim its all-time high above $73,777. Despite macroeconomic uncertainties, the US elections are currently seen as a key driver influencing market sentiment.
“…investor decisions have likely been more influenced by the upcoming US elections than by monetary policy outlooks. This trend is evident in the fact that stronger-than-expected economic data had little impact on stemming outflows, whereas the recent US vice presidential debate and a subsequent shift in polling towards the Republicans, perceived as more supportive of digital assets, led to an immediate boost in inflows and prices,” as per a recent report from CoinShares.
Traders and investors are advised to stay informed and consult with professionals before making any decisions based on market developments.
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