Striking major event in the crypto market: Over 14 billion USD in Bitcoin and Ethereum options are about to expire - traders expect massive price movements!

Striking major event in the crypto market: Over 14 billion USD in Bitcoin and Ethereum options are about to expire - traders expect massive price movements!

Bitcoin and Ethereum Options: Over $14 Billion at Expiry

Today, over $14 billion worth of Bitcoin and Ethereum options expire. Traders expect strong movements in the markets around this expiry date. While Bitcoin (BTC) is showing a bullish trend, Ethereum (ETH) remains more cautious. What will be crucial is how the market behaves immediately after expiry.

Expiration of $14.21 billion in options

The notional value of Bitcoin options expiring today is $12.075 billion. According to data from Deribit, 139,260 expiring Bitcoin options have a put-call ratio of 0.49. This ratio indicates an overhang of call options (calls) over put options (puts). The maximum pain point for these options is $85,000, which is the price at which most holders experience financial losses.

In addition to Bitcoin, 1,068,519 Ethereum options also expire today, with a notional value of $2.135 billion. These options have a put-to-call ratio of 0.39 and a maximum pain point of $2,400.

Compared to the previous week, the number of expiring Bitcoin and Ethereum options is significantly higher. According to reports from BeInCrypto, BTC and ETH options expiring last week totaled 21,596 and 133,447 contracts respectively, with notional values ​​of $1.826 billion and $264.46 million.

The significant difference in the numbers is due to the fact that the options expiring today are monthly and quarterly options. Since today is the last Friday in March, options on Deribit expire on Fridays, which is in line with traditional practice in financial markets and provides traders with a consistent schedule.

Implied volatility before quarterly option expiration

Today's option expiration marks the end of the first quarter of option sales. Analysts at Deribit monitor the implied volatility (IV) curves for BTC and ETH, which indicate market expectations for price fluctuations.

The Bitcoin volatility curve is showing a strong upward trend as calls are valued significantly higher than puts. In contrast, Ethereum’s flatter volatility curve indicates less directional bias but still shows increased volatility. This indicates expected price movements around the expiration date of the options.

Looking at the current market sentiment, there is a cautiously bearish outlook dominating the investor perspective for Bitcoin. Analysts believe that most traders expect a retest of lower price levels around $84,000-85,000. Bitcoin is currently trading at $85,960, indicating a possible short-term downward move. However, some traders note that Bitcoin is in a tight trading pattern, suggesting limited volatility unless a breakout occurs.

Key resistance levels being watched include $88,400, where significant passive selling was observed, and potential support at $77,000.

Analysts at Greeks.live note that implied volatility is under pressure due to quarterly delivery, suggesting possible trading opportunities for traders looking to exploit these fluctuations.