Key Points
- $2.86 billion in Bitcoin options and 164,687 Ethereum options contracts are set to expire, suggesting potential market volatility.
- Bitcoin’s price is nearing $100,000, and Ethereum is trading at $3,389, with analysts predicting continued upward momentum.
The cryptocurrency market is anticipating a significant event as Bitcoin options worth $2.86 billion are due to expire. This event coincides with Bitcoin’s price nearing an all-time high of $99,502 and a market cap of $1.95 trillion, suggesting potential volatility in the crypto market.
This substantial expiration could trigger short-term price fluctuations, particularly as the market eagerly awaits Bitcoin’s potential reach of the $100,000 milestone.
Details on Bitcoin Options Expiry
Data from Deribit reveals that 28,905 Bitcoin options contracts are set to expire on Friday. The put-to-call ratio stands at 1.09, indicating a bearish market sentiment despite recent growth fueled by Bitcoin whales and long-term holders.
While many anticipate a Bitcoin price breakout above $100K, a brief correction might occur before this happens. Crypto analyst Ali Martinez suggests a potential correction towards $97,085 based on the TD Sequential indicator’s sell signal on Bitcoin’s 4-hour chart.
However, if Bitcoin manages to close above $100,470, it could invalidate the bearish pattern. In such a case, Bitcoin may climb to targets of $102,656 or $104,343, according to Martinez.
Ethereum Options Expiry and Predictions
In addition to the Bitcoin options, 164,687 Ethereum options contracts are also set to expire. The lower put-to-call ratio of 0.66 reflects a generally bullish sentiment in the Ethereum market. Ethereum is currently trading at $3,389.
Analysts at Greeks.live suggest that Ethereum could see continued upward momentum in line with the bullish put-to-call ratio. They added that the market sentiment remains extremely optimistic at this point.
Despite Bitcoin’s risk of a correction, analysts believe the broader market rally may prevent a significant pullback. This could be due to substantial capital inflows into ETFs, particularly BlackRock’s newly launched IBIT options. Yesterday, BlackRock’s IBIT recorded $5 billion in trading volumes.
Moreover, the total inflows into spot Bitcoin ETFs yesterday crossed over $1 billion, with IBIT alone contributing more than $600 million.
