Critical Day for These 2 Giant Cryptocurrencies: Here’s What Will Happen!

The cryptocurrency market is on track to close the week with further losses. Especially Bitcoin and Ethereum attract attention with daily losses of up to 3 percent. Besides, today is quite critical for these two cryptos. Because Bitcoin and Ethereum options worth approximately $1.96 billion will expire. This will create a significant expectation in the crypto market. It is possible for expiring crypto options to cause significant price fluctuations. Therefore, traders and investors are monitoring the developments closely.

Bitcoin and Ethereum options expire: What will happen?

cryptokoin.com As you follow from , the market went back and forth during the week and then started to decline. While the leading crypto Bitcoin fell below the $65,000 level, the dominant altcoin Ethereum lost $3,500. The nominal value of Bitcoin options expiring today is $1.27 billion. The put/call ratio of these 19,712 expiring contracts is 0.46. Additionally, the maximum pain point for BTC is $66,500.

Expiring Bitcoin Options. Source: Deribit

In the context of options trading, the maximum pain point represents the price level that causes maximum financial pain for option holders. Meanwhile, the put-call ratio shows that call options are more common than put options. On the other hand, Ethereum has 197,068 contracts with a nominal value of $693.37 million. The put/call ratio of these expiring contracts is 0.30 and the maximum pain point is $3,500.

Expiring Ethereum Options. Source Deribit

Is the cryptocurrency market poised for recovery?

Analysts at Greeks.Live noted an increase in futures option volume, particularly in block calls. Despite high realized volatility (RV), implied volatility (IV) remained stable. This shows that no major movement is expected in the market before the three-month delivery. Greeks.Live analysts say that the third quarter was mostly difficult for the crypto market. However, they state that the market recovered at the end of the quarter. In this context, analysts say, “The trend in the second quarter of this year was weaker, in line with past experience.” says.

This week, Bitcoin has fluctuated in the mid-$64,258 to $66,782 range, while Ethereum has traded in the $3,387 to $3,632 range. At the time of writing, Bitcoin is trading at $64,316, down 4.22% in the last seven days. Ethereum, on the other hand, is changing hands at $ 3,480 with a loss of 1.3% on its weekly chart. Options expiration may cause temporary market disruptions. However, it mostly leads to stability. Analysts’ latest comments highlight historical patterns that investors can consider when strategizing their positions. Ultimately, investors must remain vigilant by analyzing technical indicators and market sentiment to effectively manage expected volatility.