Key Points
- Options contracts for Bitcoin and Ethereum worth $3 billion are set to expire, potentially increasing market activity.
- Market makers are repositioning amid the holiday trading lull, with Bitcoin and Ethereum levels garnering attention.
Impending Expiry of BTC and ETH Options Contracts
Options contracts for Bitcoin and Ethereum valued at $3 billion are due to expire on December 13.
This often results in a surge of market activity as traders keep a close eye on potential price shifts.
At the time of writing, Bitcoin was valued at $100,073, while Ethereum was trading at $3,881.12.
Bitcoin and Ethereum Options Nearing Expiry
Bitcoin has options contracts worth $2.1 billion nearing expiry.
The put-call ratio stands at 0.83, suggesting more call options (bullish bets) than put options (bearish bets).
The max pain point, the price level where most options will expire worthless, is $98,000.
Traders are closely monitoring Bitcoin’s next moves as its market cap stands at $1.98 trillion with a circulating supply of 20 million coins.
The 24-hour trading volume for BTC has reached $94.48 billion, indicating increased activity as the expiration approaches.
Ethereum has options contracts worth $640 million nearing expiry, with a put-call ratio of 0.68, showing even stronger bullish sentiment than Bitcoin.
The max pain point for Ethereum is $3,700, a level that traders are closely monitoring.
Ethereum’s trading volume over the past 24 hours is $44.47 billion, with a market cap of $467.65 billion and a circulating supply of 120 million ETH.
Despite a slight 0.63% price drop in the last 24 hours, Ethereum’s week-to-week performance remains stable, reflecting a wait-and-see approach among traders.
According to Greeks.live, market makers are adjusting their positions during this period of expirations, which coincides with lower trading volumes during the holiday season.
Analysts have noted rising Implied Volatility (IV), indicating that markets are preparing for sharper price movements.
They also highlighted the growing correlation between cryptocurrency prices and U.S. stock markets, suggesting that swings in equities’ prices may influence cryptocurrency movements.
The expiry of these options follows a week of economic developments in the U.S.
November’s inflation rate rose to 2.7%, with core CPI at 0.3%, indicating ongoing inflationary challenges.
While a Federal Reserve rate cut is anticipated, concerns persist about whether inflation will delay easing.
These factors, along with the expiration of billions in crypto options, could lead to increased market activity.
