Market prepares for $2.72B Bitcoin and Ethereum options expiry

Today, the cryptocurrency market is closely monitoring the expiration of approximately $2.72 billion worth of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) options. 

This event is expected to generate notable price volatility, as traders react to the settling of these contracts. 

According to Deribit, 20,815 Bitcoin contracts valued at around $2.1 billion are set to expire, with a put-to-call ratio of 0.83. 

This indicates a bullish sentiment among traders, who are selling more call options than puts. 

The maximum pain point for Bitcoin stands at $98,000, slightly below its current trading price of approximately $99,758.

In addition, 164,330 Ethereum options contracts worth nearly $644 million will also expire today. 

The put-to-call ratio for Ethereum is 0.68, suggesting a similar bullish outlook among traders.

Market analysts from Greeks.live noted that this week has been characterized by corrections in the crypto market, contrasting with last week’s performance.

“The recent Block call options trading accounted for a higher proportion,” they stated, indicating increased activity in options trading.

As Christmas approaches, trading volumes typically decline, leading market makers to adjust their positions.

The recent U.S. inflation data showing a rise to 2.7% adds further uncertainty to the market's potential for sustained rallies.

At the time of reporting, the Bitcoin price was $99,972.11, and the Ethereum price was $3,885.59.