- $4.5 billion in Bitcoin and Ethereum options expiring today could cause significant market shifts.
- Traders anticipate a potential price drop with Bitcoin’s max pain point at $114K.
- Glassnode predicts Bitcoin could fall to $105.5K if bulls fail to hold key support.
Traders are gearing up for a major options expiry today, with a combined value of $4.5 billion in Bitcoin and Ethereum options. The expiry could influence the crypto market significantly, as many expect a price pullback following a recent rebound.
Approximately 30,000 Bitcoin options, worth $3.52 billion, are set to expire on the Deribit exchange today. The put-call ratio currently sits at 1.23, indicating a bearish sentiment among traders. This suggests that more traders are betting on the price of Bitcoin to drop, following the recent rally.
The current max pain price for Bitcoin stands at $114,000, notably lower than the current market price. The concentration of puts around the $100,000 to $108,000 strike price signals that traders may push the price lower to minimize losses. Furthermore, the market is approaching a “Triple Witching,” combining weekly, monthly, and quarterly expiries, which could concentrate liquidity and cause further volatility.
Ethereum Faces Bearish Sentiment as Expiry Looms
Ethereum is also seeing significant options expiry, with 177,000 ETH options, valued at $0.80 billion, set to expire on Deribit. Like Bitcoin, Ethereum’s options market is leaning bearish, with a put-call ratio of 1. This indicates that many traders are betting on a price decline. Ethereum’s max pain price is currently at $4,500, slightly below its current price of $4,539.
Interestingly, the $4,500 strike price holds more call option bets than put options. While this could signal some bullish interest, the higher call volume could lead to a downward push as traders attempt to bring the price closer to the max pain point.
Glassnode Predicts Possible Bitcoin Decline to $105.5K
The recent rebound in the crypto market, following positive news about the US SEC approving crypto ETF listing standards, has sent Bitcoin prices soaring to nearly $118,000. However, Glassnode’s latest analysis suggests that Bitcoin could face a significant pullback if the bulls fail to hold a key support level. The platform forecasts that Bitcoin could drop to $105,500 if it fails to maintain the $115,200 level.
In the coming days, Bitcoin futures, along with record-high open interest, are set to expire, further increasing market uncertainty. If traders sell off to reduce risk, this could lead to a sharp decline in Bitcoin’s value.
