Introduction
Nearly $3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options will expire today. When large options expire, prices can swing quickly, so traders are watching closely.
$2.72 Billion in Bitcoin contracts expiring
According to Deribit, about 20,815 Bitcoin contracts worth $2.077 billion are set to expire. The put-to-call ratio is 0.83, meaning there are more long positions (expecting prices to rise) than short ones. 164,330 contracts worth $644 million will also expire for Ethereum. The put-to-call ratio is 0.68, showing that most traders are betting on ETH’s price going up.
What’s Happening in the Market?
This week, the market faced more corrections compared to last week. Analysts at Greeks Live noted that large investors are trading block call options, which make up over 30% of daily trades. With Christmas nearing, trading activity in Europe and the US usually slows down. However, the US stock market is having a bigger effect on crypto prices this year. Analysts say this could lead to a Christmas rally if buyers return.
Short-Term Volatility Is Rising
Recent price swings have caused short-term volatility to rise slightly. Analysts say this is a good time for traders to use options for short-term moves.
Bitcoin and Ethereum Prices at Key Levels
- Bitcoin is trading at around $100,000, a key psychological level.
- Ethereum is holding close to $4,000, showing steady momentum.
Today’s options expiry will determine if prices hold these levels or pull back.
Economic Factors Add Pressure
Recent US inflation data showed a rise to 2.7% in November. Core CPI remained steady at 0.3%. Many expect the Federal Reserve to cut interest rates, but sticky inflation could slow these plans. If that happens, crypto prices face more pressure.
What to Watch Next For Bitcoin
The expiry of these large options could cause quick price moves in Bitcoin and Ethereum. Traders will focus on:
- A breakout above $4K for Ethereum.
- Market makers are adjusting positions for the year-end slowdown.
- Rising short-term volatility could create trading opportunities.
Conclusion
Nearly $3 billion worth of BTC and ETH options are expiring today. Bitcoin trades around $100,000, and Ethereum holds close to $4,000. Traders are watching for market swings caused by these contracts and other economic pressures. Whether prices rally or drop will depend on how traders react in the coming days.
