The crypto market is set to experience a major event on Friday, with $10.31 billion in Bitcoin and Ethereum options contracts set to expire. This large-scale expiration could trigger short-term price fluctuations, especially given the recent declines in both assets, according to Binance.
Of this total, Bitcoin options are valued at $8.36 billion and Ethereum options at $1.94 billion, making traders brace for potential volatility. The number of expiring contracts has risen sharply from last week, with Bitcoin options expiring on 80,179 contracts, up from 30,645 the week before. Ethereum’s expiring contracts have surged to 603,426, compared to 173,830 previously.
Bitcoin’s options expiration has a “maximum pain” price of $98,000 and a put-to-call ratio of 0.68, signaling a generally bullish sentiment despite recent pullbacks. Ethereum’s maximum pain price is $3,300, with a put-to-call ratio of 0.43, suggesting a similar optimistic market view. Ratios below 1 for both assets point to a higher number of traders betting on price increases.
However, analysts caution that options expirations tend to cause volatility, as traders often reposition ahead of the event. “This could bring significant market volatility, with sharp price movements and potential liquidations,” warned Crypto Dad, a popular analyst on X.
As options expiration approaches, the market remains uncertain. Bitcoin’s value has dropped by 0.64%, trading at $104,299, while Ethereum has seen a modest 1.04% rise, now trading at $3,226.
