Key Points
- Bitcoin and Ethereum options worth $5.5 billion are expiring today.
- The volume of Bitcoin options expiry has surged to $4.5 billion this week.
Bitcoin’s price is recovering to $68,000 following a dip to $65,500 earlier this week, ahead of the Friday options expiry.
According to data from derivatives platform Deribit, $4.5 billion worth of Bitcoin options are set to expire today.
Bitcoin Options Expiry Details
Today, October 25, a total of 62,657 Bitcoin options contracts will expire. The maximum pain point is $64,000 with a put-call ratio of 0.66.
The Bitcoin price is currently above its maximum pain point, suggesting that options expiring at this stage could result in losses for the option holders.
The put-call ratio is a key sentiment indicator. A ratio below 1 usually indicates bullish sentiment, while a ratio above 1 implies bearish sentiment.
The volume of Bitcoin options expiry has significantly increased to $4.5 billion this week, compared to the average of $1.5 billion in previous weeks.
Implied Volatility Shift
Analysts at BloFin Academy have noticed a significant shift in implied volatility (IV) as the US elections approach. They have attributed this shift to investors’ hedging and speculative needs.
They also pointed out a sharp rise in Bitcoin’s “election day option”, highlighting Bitcoin’s sensitivity to macro events. However, most investors are currently staying on the sidelines, suggesting that October’s volatility may remain limited.
Ethereum Options Expiry
Along with Bitcoin, 403,426 Ethereum options contracts worth $1.01 billion are set to expire today. The maximum pain point is $2,600 with a put-call ratio of 0.97.
This shows a tough fight between the Ethereum bulls and bears.
The Ethereum price movement has been testing investors’ patience for a while, with spot Ethereum ETFs also not seeing a good pick up, unlike their Bitcoin counterparts.
The Ethereum price has been trading around $2,515 levels with no clear indication of the next directional move.
It is speculated that the presidency of Donald Trump could trigger an altcoin market rally, potentially pushing Ethereum to over $3,000 levels.
