Coinspeaker
$5.5 Billion in Bitcoin and Ethereum Options Set to Expire Today, What’s Next?
Following some selling pressure that drove Bitcoin down to $65,500 earlier this week, the price has partially rebounded to $68,000 today ahead of the options expiry on Friday. According to data from the derivatives platform Deribit, a total of $4.5 billion in Bitcoin options are set to expire today.
Details reveal that 62,657 Bitcoin options contracts are scheduled to expire today, October 25, with a maximum pain point at $64,000 and a put-call ratio of 0.66.
Photo: Deribit
With BTC price
BTC
$67,780
24h volatility:
1.3%
Market cap:
$1.34 T
Vol. 24h:
$29.47 B
remaining above its maximum pain point, the expiring options at this juncture could lead to losses for option holders. Additionally, the put-call ratio serves as an important sentiment indicator; a ratio below 1 typically indicates bullish sentiment, as more investors foresee market gains. Conversely, a ratio above 1 often points to bearish sentiment, indicating concerns about a downturn in the market.
Interestingly, the volume of Bitcoin options set to expire has ballooned to $4.5 billion this week, compared to an average of $1.5 billion in the previous weeks of this month.
Analysts at BloFin Academy have noted a notable shift in implied volatility (IV) as the US elections draw near. They stated:
“The change in implied volatility first reflects the election’s impact on the expected volatility of the crypto market. Regardless of whether it pertains to BTC or ETH options, the implied volatility for options expiring on November 8 has seen a significant increase, surpassing that of longer-term options.”
This shift in implied volatility (IV) is attributed to investors’ hedging and speculative activities. Analysts also point out a sharply increasing interest in BTC’s “election day option,” highlighting Bitcoin’s sensitivity to macroeconomic events. For now, however, most investors appear to be adopting a wait-and-see stance, suggesting that October’s volatility may remain subdued.
Exploring Ethereum Options Expiry
In addition to Bitcoin, a total of 403,426 Ethereum options contracts valued at $1.01 billion will expire today, with a maximum pain point at $2,600 and a put-call ratio of 0.97. This indicates a fierce battle between ETH
ETH
$2,539
24h volatility:
0.7%
Market cap:
$305.74 B
Vol. 24h:
$17.31 B
bulls and bears.
Photo: Deribit
The price movement of Ethereum has been trying the patience of investors for some time, especially with spot Ethereum ETFs not gaining traction like their Bitcoin counterparts. Currently, Ethereum is trading around the $2,515 mark, with no clear direction in sight for its next move.
It is possible that the presidency of Donald Trump could initiate a rally in the altcoin market, potentially pushing prices above $3,000.
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