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Bitcoin, Ethereum Options Expiry Triggers $2.63B Shake-Up Amid Market Pullback
The crypto markets are witnessing a significant shake-up following the expiry of major Bitcoin [BTC] and Ethereum [ETH] options contracts worth $2.63 billion. The expiration has triggered heightened volatility, with both assets under pressure due to the market pullback.
As of December 21st, Bitcoin’s $2.04 billion options expired with a max pain point of $101K, while Ethereum’s 173,000 ETH options expired with a notional value of $590 million. The Put-Call Ratio for Bitcoin stood at 0.87, indicating a leaning towards bullish sentiment, whereas the lower ratio of 0.5 on the Ethereum side reflected stronger optimism among traders.
The recent expiries have led to market instability, resulting in price drops below crucial levels. At press time, Bitcoin trades around $95,202.42, falling short of its max pain level of $101K, while Ethereum is hovering at $3,289.44, also failing to reach its max pain point of $3,750.
Historically, such expiries have resulted in short-term market instability as traders adjust their positions post-expiry. The event has led to increased market activity and an influx of trading volume, with block call options accounting for over 30% of daily trading in recent days.
Furthermore, the approaching Christmas and year-end delivery period is coinciding with ETF outflows, further fueling the market movements. Market makers have been adjusting their positions to align with the high volume of expiring options, contributing to the heightened uncertainty.
Source: ambcrypto.com
