$6 Billion Worth of Bitcoin and Ethereum Options Expiring in the U.S.

$6 Billion Worth of BTC and ETH Options Expiring in the US

Today, approximately $6 billion worth of Bitcoin (BTC) and Ethereum (ETH) options will expire in the US. This event is drawing attention in the markets as it occurs ahead of Fed inflation data. The expiration of options could affect the price movements of the largest crypto assets by market capitalization and could increase volatility in the upcoming period.

Volatility and Expectations in the Options Market

The crypto derivatives market is undergoing a critical threshold during a period of low volatility and high expectations. The total value of options expiring today is $5.86 billion, of which $5.1 billion consists of Bitcoin options and $754 million consists of Ethereum options.

Many contracts are expected to expire worthless. The maximum pain point for Bitcoin is determined to be $113,000, while for Ethereum it is $3,950. These levels may shape investors' expectations during this process.

Put-Call Ratios and Investor Sentiment

The current put-call ratios stand at 0.90 for Bitcoin and 0.77 for Ethereum. These ratios indicate that despite investors' efforts to manage risk, short-term uncertainty persists, yet there is a cautiously optimistic outlook for a bullish trend.

Put and call options represent, respectively, sale and purchase positions. Investors holding put contracts believe that the asset’s value will decrease, while those holding call contracts anticipate an upward trend.

Volatility and Long-Term Expectations

Following a recent turbulence, volatility in the crypto markets has decreased. Implied volatility is currently hovering around 40 for Bitcoin and 60 for Ethereum, indicating that wild price movements have paused. Deribit analysts assert that investors are holding their positions until expiration, reflecting sustained market confidence.

Amberdata analysts comment, “Volatility is decreasing, but calmness does not last forever. Following last week’s chaos, BTC volatility hovers around 40, while ETH volatility stands around 60. Panic has momentarily subsided.”

The sentiment in the options market is at an impressive level; as investors hedge risks, short-term put options have dominated premiums earlier this week. Additionally, strong demand for long-term Ethereum call options extending to 2026 signals optimism in investors' long-term expectations.

The information contained herein does not constitute investment advice.