The cryptocurrency market is gearing up for a significant event: the expiration of options contracts totaling around $3.9 billion, which may impact its dynamics.
Cryptocurrency Options Expire
This week, options on Bitcoin and Ethereum are expiring for a record amount. Specifically, around 34,000 Bitcoin contracts worth approximately $3.3 billion and 215,000 Ethereum contracts valued at $546 million.
Bitcoin's Max Pain Point
Expiring Bitcoin contracts show a slight bias toward bearish bets. The max pain point, or the price level where most option holders face maximum financial loss, is $106,000. At the time of writing, Bitcoin is trading around this level, indicating short-term downside pressure.
Ethereum's Status and Market Trends
Ethereum contracts show a more bullish bias, with a max pain point of $2,600. Over the past 48 hours, Ethereum has managed to hold above $2,500, though overall momentum across major altcoins remains weak. The overall state of the crypto market remains steady, considering ongoing uncertainty in both macroeconomic and political spheres.
The expiration of options contracts may inject short-term volatility, particularly given the current market situation. Traders remain cautious, as movement below key support levels could lead to increased selling pressure.
