Over $4.3 billion worth of Bitcoin and Ethereum options contracts will expire today on Deribit exchange. The large expiry could create short-term price volatility for both cryptocurrencies.
Bitcoin accounts for the majority of today’s expiring contracts with a notional value of $3.5 billion across 30,208 contracts. The Put-to-Call ratio stands at 1.23, indicating more bearish bets than bullish ones.
The maximum pain level for Bitcoin options sits at $114,000. This represents the strike price where most options expire worthless, causing maximum losses for option holders.
Ethereum options make up $806.75 million of today’s expiry with 177,398 contracts. The Put-to-Call ratio is 0.99, just below 1, suggesting slightly more bullish sentiment for ETH.
Ethereum’s maximum pain level is set at $4,500. With ETH trading around $4,590 at press time, the price could face downward pressure toward this level.
The balanced Put-to-Call ratios for both assets indicate traders are hedging their positions. Some are betting on higher prices while others prepare for potential selloffs.
Options had repriced ahead of the Federal Reserve’s Wednesday interest rate decision. Implied volatility rose while trading volume declined, showing market caution.
Bitcoin futures open interest has climbed back toward all-time highs at $86 billion according to CoinGlass data. This indicates strong institutional participation in the derivatives market.
Glassnode analysts note that 95% of Bitcoin supply is currently in profit after the recent rally. The asset needs to hold above $115,200 to maintain momentum.
Today’s expiry is similar in size to last week’s $4.3 billion expiry. The consistency suggests options markets have stabilized after recent volatility.
Recent actual volatility has increased compared to last month despite declining trading volumes. This divergence between volatility and volume is unusual for crypto markets.
Bitcoin trading near $117,147 remains about 5.6% below its all-time high. Ethereum at current levels sits roughly 7% from its peak.
Next Friday September 26 will bring the largest weekly Bitcoin options expiry in history. Over $18 billion in notional value will expire that day.
At Bitcoin’s current price of $118,000, over $2.4 billion worth of contracts are in the money. The maximum pain for that expiry sits at $110,000.
The crypto market cap holds near $4.2 trillion despite slight overnight retreats. Digital assets have traded sideways since mid-July according to market data.
Bitcoin took a brief dip to $116,750 Thursday night before recovering above $117,000 in Asian trading Friday morning.
The post $4.3 Billion Crypto Options Expiry Triggers Potential Volatility for Bitcoin and Ethereum appeared first on CoinCentral.
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