Over $10 billion in Crypto options expiring today

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A man walks past a bitcoin monument at Plaza Bitcoin in San Salvador on September 4, 2024. – According to the Institute for Public Opinion (IUDOP), Bitcoin adoption remains limited in El Salvador despite entering its third year as a legal currency. The NGO “My First Bitcoin” aims to promote cryptocurrency use by teaching it in public schools, with over 35,000 students attending their classes so far. While 88 out of 100 people reported not using Bitcoin in 2023, some, like taxi driver Napoleon Osorio, have embraced it in their businesses. “I started on my own” three years ago “and now manage 21 drivers,” Osorio says. (Photo by Marvin RECINOS / AFP)

The crypto market will witness $10.31 billion in Bitcoin and Ethereum options contracts expire today. This massive expiration could impact short-term price action, especially as both assets have recently declined, according to Binance.

With Bitcoin options valued at $8.36 billion and Ethereum at $1.94 billion, traders are bracing for potential volatility. High-Stakes Crypto Options Expirations: What Traders Should Watch Today. Today’s expiring options mark a significant increase from last week, as it expires at the end of the month. According to Deribit data, Bitcoin options expiration involves 80,179 contracts, compared to 30,645 contracts last week. Similarly, Ethereum’s expiring options total 603,426 contracts, up from 173,830 contracts the previous week.

These expiring Bitcoin options have a maximum pain price of $98,000 and a put-to-call ratio 0.68. This indicates a generally bullish sentiment despite the asset’s recent pullback. In comparison, their Ethereum counterparts have a maximum pain price of $3,300 and a put-to-call ratio of 0.43, reflecting a similar market outlook. Put-to-call ratios below 1 for Bitcoin and Ethereum suggest optimism in the market, with more traders betting on price increases. Nevertheless, analysts call for caution due to the tendency of options expiration to cause market volatility.

“This could bring significant market volatility as traders reposition ahead of expiry, expect sharp price movements and potential liquidations,” Crypto Dad, a popular user on X, warned. The warning comes as options expirations often cause short-term price fluctuations, creating market uncertainty. Meanwhile, BeInCrypto data shows Bitcoin’s trading value has dropped by 0.64% to $104,299. On the other hand, Ethereum’s price is up by a modest 1.04%, now trading at $3,226.

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