Bitcoin and Ether Options Expiry Looms, What’s Next for Crypto?

UTC by Anisha Pandey · 2 min read
Bitcoin and Ether Options Expiry Looms, What’s Next for Crypto?
Photo: Depositphotos

Ethereum is also facing major selling pressure. The cryptocurrency is trading around $2,830 zone.

The crypto market is all red, with Bitcoin plummeting to $53,400, levels last seen in February. This broader decline over the past 48 hours has wiped out over 13% of its global market capitalization, translating to a loss of more than $250 billion. However, the upcoming expiry of Bitcoin and Ethereum options contracts can put extra pressure on an already fragile situation.

BTC recently dipped below the critical $55,000 support level. If it fails to rebound, there is a risk of a further downfall to the $52,000 support level.

Meanwhile, the market braces for the expiration of over 18,300 BTC options on Deribit, with a total notional value of $1 billion. The put-call ratio stands at 0.65, and the max pain point, a price at which option holders experience maximum financial loss—has slid from $63,500 to $61,500. Notably, the put-call ratio indicates market sentiment, with a ratio below 1 suggesting more call options (bets on price increases) than put options (bets on price decreases).

Recent data reveals that the 24-hour put volume reached 19,552, compared to a 24-hour call volume of 22,088. This resulted in the put-call ratio reaching 0.88 in the last 24 hours.

Meanwhile, Ethereum is also facing major selling pressure. The cryptocurrency is trading around $2,830 zone. Moreover, 163,170 ETH options worth $472 million are also set to expire. The put-call ratio for ETH options is 0.35, and the max pain price is $3,350. In the past 24 hours, the put volume for ETH has increased to 98,643, while the call volume stands at 126,788, leading to a 0.78 put-call ratio.

CoinGlass data reveals that the ongoing market panic has resulted in over $637 million in liquidations across the crypto market. This includes $540 million in long positions and $97 million in short positions. Major altcoins like SOL, DOGE, BNB, XRP, PEPE, PEOPLE, and NOT have also seen significant liquidations.

What’s Next?

This decline is reportedly due to the once-leading exchange Mt. Gox repaying $10 billion in BTC and BCH. According to Arkham, Mt. Gox transferred 47,229 BTC today, valued at approximately $2.97 billion.

Renowned financial analyst Jacob King noted the on-chain data, which shows a large selling volume from these wallets. He predicts that the majority of the $8.2 billion in BTC that is set to be distributed back to creditors is going to be sold off. Jacob warned his followers of the upcoming bear market. “I understand this is controversial, but based on the current low demand volume, this will easily send BTC back into a harsh bear market,” he stated.

Bitcoin News, Cryptocurrency News, Ethereum News, News
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