Tomorrow will see the expiration of quarterly options on Bitcoin (BTC) and Ethereum (ETH), which is a significant market event, according to the Greeks Live portal. This expiration, with a total notional value of $7 billion, is expected to surpass the value of the prior quarter by a startling $300 million.
The event will take place tomorrow at 8:00 UTC. The expiry of 158,600 Bitcoin options, worth $4.86 billion, and $2.3 billion in Ethereum options, has traders paying careful attention.
What’s the deal?
For Bitcoin and Ethereum, the put/call ratio—a crucial sign of market sentiment—is 0.56 and 0.57, respectively. In general, a put/call ratio between 0.5 and 0.7 denotes a bullish market view and reveals traders’ upbeat attitudes. Furthermore, the maximum pain price, or the strike price at which option holders would incur the greatest possible financial losses upon expiration, is $26,500 for Bitcoin and $1,700 for Ethereum.
According to experts, the underlying assets may see more volume and volatility as a result of these options’ expiration. Trading activity will likely result in large price changes for Bitcoin and Ethereum since traders will be rebalancing or closing their holdings.
When these options expire, dealers will be forced to buy Bitcoin on the spot and futures markets if it manages to stay over the $30,000 barrier. This barrier is considered to be essential for supporting Bitcoin’s ongoing growth.
Investors and enthusiasts are urged to approach the markets with extreme care as the countdown begins.
