Nearly $4 billion in Bitcoin (BTC) and Ethereum (ETH) options contracts are set to expire today, raising concerns about potential market volatility.
With $3.4 billion in Bitcoin and $581 million in Ethereum options at stake, traders anticipate possible price fluctuations, especially as both assets have experienced recent declines.
Bitcoin’s put-to-call ratio of 0.85 and Ethereum’s 0.92 indicate a bullish market sentiment, with more bets on price increases (calls) than decreases (puts).
Despite this optimism, short-term volatility is expected, as options expirations often prompt market movement. The “maximum pain” price—a level where the greatest financial loss occurs for options holders—may influence price behavior as contracts close for both Bitcoin and Ethereum.
Data from Deribit reveals a slight decline in expiring options volume compared to last week, though the current levels remain significant enough to drive market trends. Analysts predict brief turbulence during the expirations, followed by stabilization as traders adjust to new price levels.
Looking ahead, major options expirations scheduled for late December could shape Bitcoin and Ethereum’s trajectories as 2025 approaches.
Historically, end-of-year expirations have triggered significant price shifts, with analysts speculating that Bitcoin could target new highs if bullish momentum persists. However, cautious traders and bearish positions suggest the market remains fragmented and unpredictable.
As traders brace for immediate volatility, these options expirations could set the tone for the coming months, influencing both short-term movements and longer-term market dynamics for Bitcoin and Ethereum.
