As the year draws to a close and major BTC and ETH options expire, markets brace for potential volatility. Significant options expire this week, creating conditions for substantial price fluctuations.
End of Year: Expectations vs Reality
Since early December, traders have been betting on BTC's year-end price, and now these bets are coming to a head. December 27 marks one of the largest options expiries with both weekly and monthly expiries in focus. Markets expect $14B in BTC options (146,000 contracts) to expire, along with $3.8B in Ethereum (ETH) options.
Uncertainty Surrounding BTC
BTC options may have unpredictable short-term effects on the market. The expiry could trigger either another rally or a significant correction. The overall BTC trend remains bullish, but in the short term, the market may experience unexpected swings. Traders will be closely watching the $92,000-$94,000 price range for BTC.
Bearish Outlook for ETH
On December 27, $3.83B in ETH options are set to expire. The main bearish scenario involves ETH options suggesting a bearish outlook. Despite ETH trading above $3,400, overall sentiment and open interest indicate more bearish positions. Trading activity in both cryptocurrencies may increase short-term volatility, affecting expectations for 2025.
The December expiry of BTC and ETH options may influence market volatility as the year ends. Long-term expectations for BTC remain bullish, while ETH forecasts indicate more bearish sentiments.
