Bitcoin and Ethereum Options Worth $1.87B Set to Expire Today, Will the Market React?

The cryptocurrency market expects volatility today as Bitcoin and Ethereum options worth $1.87 billion are set to expire in a few hours.

Data from Greeks live shows that 24,000 BTC options, boasting a nominal value of $1.4 billion, a put-call ratio of 0.83, and a maximum pain point of $59,500, are set to expire. This indicates that investors are betting on Bitcoin to sustain the downtrend.

Furthermore, about 184,000 ETH options, which feature a nominal value of $470 million, a put-call ratio of 0.8, and a maximum pain point of $2,650, are due today. The put-call ratio implies a bearish sentiment among traders, with Ethereum down over 25% in the past month.

With options worth $1.87 billion set to expire today, historical statistics point to impending market volatility. Prices typically trend towards the maximum pain point, where the value of open call and put options is minimized. This will inflict maximum losses on traders and reduce the payout to sellers.

With the options set to expire at 08:00 UTC, the market could see some volatility. Bitcoin is trading at $58,506, 1.7% away from the option’s maximum pain point. Also, Ethereum is trading at $2,626 and needs to move 0.9% to incur maximum loss on bear option traders.

Options Volume Continues to Decline

Notably, the August 16 expiring options are about 10% of the total trading positions and over 20% of the positions set to expire in the rest of the year. This week’s expiring positions are lower than the $2.46 billion notional value options that expired earlier in the month.

Options data also showed an even options term distribution and strong term structure, indicating lower expectations of further market volatility. With the options market lowering expectations of market volatility, cryptocurrencies could enter a stable period soon.