Market Awaits Impact of Over $5 Billion in Expiring Bitcoin, Ethereum Options 📊
Traders and investors should anticipate volatility as $5.26 billion in Bitcoin and Ethereum options expire. Bitcoin options account for $4.25 billion, while Ethereum options represent $1.01 billion.
Bitcoin's options, set to expire with 62,657 contracts, have a put-to-call ratio of 0.66, indicating more calls than puts, potentially reflecting market optimism. Ethereum options have a similar ratio, signaling near-neutral sentiment.
The max pain point theory highlights possible price convergence around strike prices, with Bitcoin priced above and Ethereum below their max pain points. This scenario suggests Bitcoin could drop and Ethereum rise towards their max points.
The volume of options expiring now is substantially larger than earlier in the month. Analysts note increased implied volatility ahead of US elections, affecting expectations for both cryptos. This reflects traders' hedging against potential market shifts.
Despite potential volatility, analysts believe the rest of October might see limited fluctuations due to investor caution ahead of US elections. Policy uncertainty in the US also contributes to market dynamics in the crypto sector.
Source: beincrypto.com ↗
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