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Bitcoin and Ethereum Options Expiry Looms, Impacting Market Sentiment

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In the coming days, approximately 159,000 BTC options are set to expire, generating significant interest among traders. With a put call ratio of 0.56, which measures the ratio of put options (bearish bets) to call options (bullish bets), market sentiment leans slightly towards the bullish side. Additionally, a max pain point of $26,500 suggests that this price level would cause the most financial pain to option holders. The notional value of these expiring options is estimated to be around $4.9 billion, further emphasizing the potential market impact.

Ethereum Options Expiry:

Simultaneously, the expiry of around 1.25 million ETH options adds another layer of complexity to the market dynamics. The put call ratio for Ethereum options stands at 0.57, indicating a slightly higher bearish sentiment compared to Bitcoin. The max pain point for Ethereum options is $1,700, meaning that this price level could cause the most financial pain for option holders. The notional value of expiring ETH options is estimated at $2.3 billion, underlining the substantial financial stakes involved.

Options Expiry Impact:

It is important to note that over 40% of the expiring options will result in actual delivery, leading to a significant release of margin and potential price depreciation. When options expire for delivery, traders who hold these positions are required to fulfill them, which often triggers market sell-offs. Consequently, this release of margin and subsequent sell-off can exert downward pressure on options prices.


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