news 
Bitcoin, Ethereum Options Expiry Triggers $2.63 Billion Shake-Up Amid Market Pullback
The cryptocurrency market is experiencing heightened volatility following the expiration of major Bitcoin and Ethereum options contracts worth a staggering $2.63 billion. The expiries have triggered a massive shake-up in the market, with both Bitcoin and Ethereum plummeting in value.
As of writing, Bitcoin (BTC) has fallen by 6.41% over the past 24 hours, wiping off nearly 5.10% of its overall value over the week. Its market cap now stands at $1.88 trillion. On the other hand, Ethereum (ETH) has suffered an even steeper decline, losing a whopping 10.50% in the same time frame and 15.61% over the week, resulting in a reduced market cap of $396.41 billion.
Industry observers suggest that the massive options expiries are largely responsible for the current market dynamics. Bitcoin’s put-call ratio remains at 0.87, indicating a slight leaning toward bullish sentiment among traders. Conversely, Ethereum’s lower put-call ratio of 0.5 reflects stronger optimism in the space.
A notable aspect of this situation is that both Bitcoin and Ethereum remain below their respective max pain levels. Bitcoin’s current price stands at $95,202.42, while Ethereum trades at $3,289.44. Historically, such expiries have led to stabilization in market movements as traders adjust to new price levels.
Analysts are warning that the expiration of over 40% of crypto options by year-end may result in reduced implied volatility, making options trading more accessible and affordable in the short term. This development could contribute to a potential recovery for both Bitcoin and Ethereum towards $100,000 and $3,750 respectively.
In related news, the cryptocurrency market has been witnessing increased ETF outflows amidst the holiday season. Market makers have been adjusting their positions to align with the high volume of expiring options, resulting in block call options accounting for over 30% of daily trading activity.
The author Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets.
Source: ambcrypto.com
