Substantial number of Bitcoin (BTC) and Ethereum (ETH) options are set to expire. With the expiry date just around the corner, traders and investors are closely monitoring the market dynamics, looking for potential opportunities and insights.

According to recent reports, approximately 86,000 BTC options and 695,000 ETH options are nearing their expiration date. These options contracts represent a substantial amount of notional value, totaling $2.26 billion for BTC options and $1.25 billion for ETH options. As the expiration date approaches, market participants are paying close attention to various key metrics to gauge the potential impact on the cryptocurrency market.

Put Call Ratio

One important metric to consider is the Put Call Ratio, which measures the relative number of put options (bearish bets) to call options (bullish bets) in the market. For the BTC options set to expire, the current Put Call Ratio stands at 0.38. This suggests that there is a higher demand for bullish positions, indicating a generally optimistic sentiment among traders and investors. Conversely, the Put Call Ratio for the expiring ETH options is 0.49, signaling a slightly more balanced sentiment for Ethereum.

Max Pain Point

Another noteworthy aspect is the concept of the “max pain point.” This term refers to the price level at which option holders would experience the most financial pain or loss. For the BTC options expiry, the max pain point is estimated to be around $27,000. This implies that if the price of Bitcoin were to settle around this level, it would cause the most significant financial loss for option holders. Similarly, the max pain point for the expiring ETH options is projected to be approximately $1,800.