The cryptocurrency market is set to experience increased volatility as around $1.6 billion in Bitcoin and Ethereum options expire. The Federal Reserve's recent interest rate cut has led to a rise in demand for these cryptos.
Bitcoin Options Expiration
Deribit estimates that over 20,000 Bitcoin options contracts worth $1.26 billion are about to expire, with a put-to-call ratio of 0.85 and a maximum pain point of $58,500.
Ethereum Options Expiration
Meanwhile, 125,046 Ethereum contracts worth $330.8 million are set to expire, with a put-to-call ratio of 0.65 and a maximum pain point of $2,350.
Market Reaction to Fed's Decisions
Analysts at Greeks.live identified the Federal Reserve's interest rate cut as a factor contributing to a 25% fall in implied volatility across short-term options. However, despite the rally, Bitcoin and Ethereum are currently trading at slightly lower prices, prompting traders to be cautious about the risk of short-term volatility.
Bitcoin and Ethereum continue to trade at adjusted prices following the recent market rally, indicating possible short-term price fluctuations. Currently, Bitcoin is trading at around $63,107, up by over 5% in the last 7 days.
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