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$5 Billion in Crypto Options Expiring Today, What It Means for Bitcoin and Ethereum Beincrypto 30 Aug 2024

$5 Billion in Crypto Options Expiring Today, What It Means for Bitcoin and Ethereum 📉

Today's crypto market will see $5.01 billion in Bitcoin and Ethereum options contracts expire, potentially impacting short-term price action. This comes as both assets have recently faced declines.

Bitcoin options account for $3.67 billion, while Ethereum options are valued at $1.36 billion, leading traders to prepare for potential volatility increases.

Data from Deribit shows a significant rise in expiring options compared to last week, with Bitcoin options involving 61,793 contracts and Ethereum options totaling 538,872 contracts, both substantially higher than the previous week's numbers.

The maximum pain price for expiring Bitcoin options is $61,000 with a put-to-call ratio of 0.59, indicating a bullish market sentiment despite recent pullbacks. Ethereum options have a maximum pain price of $2,800 and a put-to-call ratio of 0.49, reflecting similar optimism.

Max pain, the price where most options expire worthless, and put-to-call ratios below 1 suggest more traders are betting on price increases. Analysts also note an uptick in implied volatility (IV) due to recent price declines and external factors like Nvidia's earnings.

Long positions in block options trading have increased, indicating some large-scale traders are expecting future price rises. Despite recent declines in Bitcoin and Ethereum prices, markets are expected to stabilize after the options expiration.

Options expirations often cause short-term fluctuations but typically lead to market stabilization as traders adapt. Today's high-volume expiration could influence future market trends.

Source: beincrypto.com ↗

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