Market Turmoil Erupts Following Options Expiry, Triggers $2.63 Billion Shift in Crypto Landscape
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**Bitcoin, Ethereum options expiry triggers $2.63B shakeup amid market pullback**
The crypto market has been rocked by a massive shakeup following the expiry of major Bitcoin [BTC] and Ethereum [ETH] options contracts worth a staggering $2.63 billion.
As of December 20th, 21,000 BTC options expired with a notional value of $2.04 billion, while 173,000 ETH options expired with a notional value of $590 million. The significance of this event cannot be overstated, as the market’s highly anticipated expiration has already started to take its toll on both Bitcoin and Ethereum.
The Bitcoin price is currently trading at $95,202.42, a far cry from its max pain point of $101,000. Meanwhile, Ethereum has fared even worse, losing 10.5% in a single day and plummeting below its max pain level of $3,750 to trade at $3,289.44.
Market analysts are warning that the expiration of such massive options contracts could have far-reaching consequences for both assets. The Put-Call Ratio, an indicator that gauges market sentiment, revealed a leaning toward bullish sentiment for Bitcoin, with a reading of 0.87. In contrast, Ethereum’s Put-Call Ratio sat at a dismal 0.5.
This unexpected correction is likely to be short-lived, as the market adjusts to the new price levels and positions are rebalanced. Analysts expect potential recovery towards $100,000 for Bitcoin in the coming sessions. Unfortunately, Ethereum remains mired below its max pain point, suggesting further losses may lie ahead.
Industry insiders are cautioning that such expirations often trigger short-term volatility, as traders reposition their portfolios and adjust to new market realities. As such, investors should expect heightened activity in the coming days as these adjustments take place.
In related news, records have been set for Bitcoin’s exchange transfers, which have reached a record low. The implications of this phenomenon on BTC’s price trajectory are still uncertain but will be explored further in an upcoming article.
It is essential to monitor market developments closely as the crypto ecosystem continues to evolve at an unprecedented pace.
Source: ambcrypto.com
