On January 17, $2.17 billion in Bitcoin options and $602 million in Ethereum options will expire, potentially affecting market volatility.
Key Metrics for Options Expiry
According to Deribit, $2.17 billion in Bitcoin options and $602 million in Ethereum options are set to expire on January 17. The put/call ratio for Bitcoin is 0.94 with a max pain price of $96,000, while Ethereum's put/call ratio is 0.36 with a max pain price of $3,250.
What Do Put/Call Ratio and Max Pain Price Mean?
The put/call ratio indicates the balance of bearish (put) and bullish (call) options. Bitcoin's ratio is 0.94, indicating a nearly even distribution, while Ethereum's 0.36 shows a bullish trend. The max pain price is the level at which option holders would experience maximum loss. It's set at $96,000 for Bitcoin and $3,250 for Ethereum.
Potential Market Impacts
The expiry of such large amounts could lead to price swings as traders adjust positions. Bitcoin's max pain price may face pressure to remain around $96,000, while Ethereum exhibits a stronger bullish sentiment. This reflects a balanced outlook for Bitcoin against optimism for Ethereum in the market.
The expiry of Bitcoin and Ethereum options on January 17 could significantly impact market dynamics, highlighting the importance of monitoring potential volatility and adjusting trading strategies accordingly.
