Watch Out: A Large Number of Bitcoin and Ethereum Options Are Expiring Today—But the Real Bombshell Is Next Week
A significant option expiration occurred in the cryptocurrency markets today, with approximately $1.97 billion worth of Bitcoin ($BTC) and Ethereum ($ETH) options reportedly expiring and entering settlement.
Markets are now focused on the major quarterly contract expiry date next week.
According to Greeks.live data, 23,000 $BTC options reached expiration today. The total nominal value of these options was calculated at $1.6 billion, while the put/call ratio was 0.88. The maximum pain level was $70,000.
On the Ethereum side, 176,000 options have expired. The total value of $ETH options was $370 million, while the put/call ratio was recorded at 1.04. The maximum pain point was determined to be $2,150.
Greeks.live analyst Adam noted that the recent upward trend in the market has ended, with Bitcoin briefly falling below $70,000. According to the analyst, the $75,000 level, which has been a strong resistance for the past week, could not be breached. It was stated that approximately 5% of end-of-month option positions were concentrated at this level, and that the failure of breakout attempts led the price back down to around $70,000.
Ahead of the quarterly options expiry next Friday, the $75,000 level stands out as the region with the highest concentration of open positions. In a downside scenario, the $65,000, $62,000, and $60,000 levels are prominent support areas.
In the options market, no significant change was observed in terms of volatility. Implicit volatility (IV) in Bitcoin options remained at 50%, while in Ethereum options it was measured at 70%. However, the decrease in realized volatility (RV) led to an increase in the volatility risk premium (VRP).
The data also reveals that overall market appetite remains weak. Only 5% of total open positions reached expiry, marking historically low levels, while Bitcoin trading volume remained quite limited despite price fluctuations. A general decline in skew volumes alongside price drops indicates that the market remains fragile and bullish expectations remain weak.
*This is not investment advice.
