Over $2.2 billion in Bitcoin (BTC) and Ethereum (ETH) options are expiring today, April 18—a date which also aligns with Good Friday. This convergence of events is raising speculation about potential volatility in the cryptocurrency markets.
Details of the Expiry
According to data from Deribit, today’s expiries include:
- 23,221 BTC options contracts with a total value of $1.97 billion, and a maximum pain point of $82,000
- 177,130 ETH options contracts worth approximately $279.8 million, with a maximum pain point of $1,600
The maximum pain point refers to the strike price at which the highest number of options holders would incur losses. It often guides short-term price movement as contracts approach expiration.
Market Sentiment
The put-to-call ratios suggest a moderately bullish outlook among options traders:
- BTC Put/Call Ratio: 0.96
- ETH Put/Call Ratio: 0.84
These numbers indicate a slight dominance of call options, hinting at continued upward price expectations, at least in the short term.
Macroeconomic Backdrop
The expiry event is taking place amid macroeconomic uncertainty, including anticipation of U.S. interest rate changes and flat market conditions. Analysts also point out the presence of low volatility and flat options skew, often precursors to larger market moves following options expirations.
Just last week, a $2.5 billion options expiry led to lower crypto prices and a jump in demand for protective put options. Now, increasing concerns over market sentiment and geopolitical risk have some experts sounding the alarm for a possible “black swan” event.
Current Price Dynamics
At the time of the report, Bitcoin was trading just above $84,000, slightly higher than its maximum pain point. This proximity may create downward pressure as market forces attempt to drag prices closer to the strike level, impacting both short-term investors and institutional traders.
For more, you can read the full article on BeInCrypto.
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