Market overview
A major options expiry is taking place in the cryptocurrency market today. Contracts linked to Bitcoin and Ethereum worth almost $3 billion are set to expire on Deribit, one of the world’s largest crypto derivatives exchanges. Such large expiries often attract attention because they can affect short-term price movements. When options expire, traders either close, roll over, or settle their positions. This can increase trading activity and cause brief price swings.
Bitcoin levels
Around 38,000 Bitcoin contracts worth about $2.5 billion are expiring. The put-call ratio stands at 0.71. Bitcoin’s max pain level is $74,000. The max pain level is the price at which the highest number of options contracts would expire worthless. At the time of expiry, Bitcoin is trading near $66,800 to $66,900. It has also struggled to move back above $70,000 in recent sessions. The gap between the current price and the max pain level has increased market interest. However, last week’s $2.1 billion expiry led to only about a 2% move in Bitcoin.
Ethereum
Ethereum contracts worth about $410 million are also expiring. Nearly 215,000 contracts are involved. The put-call ratio for Ethereum is 0.82, which shows slightly cautious sentiment among traders. Ethereum’s max pain level is around $2,100. The cryptocurrency has been trading between $1,950 and $1,985. Like Bitcoin, it is currently below its max pain level. Traders are watching whether prices move closer to these levels before or after settlement. Short-term volatility is possible, especially during US trading hours.
Global market
The expiry comes at a time of broader weakness in global markets. Bitcoin recently slipped toward $65,000 along with losses in US technology stocks. Investors have turned cautious amid concerns about economic data and slower investment momentum in some sectors. Gold has fallen around 3% in recent sessions, while silver has dropped nearly 11%. US home sales data showed an 8.4% decline, and jobless claims came in higher than expected. Market experts say that if Bitcoin holds near current levels, it may attempt a move toward the $66,000 to $67,000 range. However, any strong rally will depend on overall market sentiment.
