TL;DR
- The expiration of $4 billion in Bitcoin and Ethereum options could trigger significant volatility in the crypto market.
- The maximum pain points are set at $80,000 for BTC and $3,000 for ETH, marking critical levels for traders.
- External factors, such as Donald Trump’s victory and Elon Musk’s role, add uncertainty to the crypto market’s future.
A new wave of uncertainty looms over the crypto market due to the expiration of Bitcoin and Ethereum options with a combined value of nearly $4 billion.
The expiration is scheduled for November 15, 2024, and involves contracts totaling 39,000 BTC and 189,000 ETH. This could lead to heightened volatility in the coming days. Analysts have noted that the put-to-call ratio for BTC stands at 0.84, indicating a stronger inclination toward put options, which grant holders the right to sell BTC at a specific price. For ETH, this ratio is even higher, reaching 0.92.
15 Nov Options Data
39,000 BTC options expired with a Put Call Ratio of 0.84, a Maxpain point of $80,000 and a notional value of $3.4 billion.
189,000 ETH options expired with a Put Call Ratio of 0.92, a Maxpain point of $3,000 and a notional value of $580 million.
Bitcoin… pic.twitter.com/H3ztpSF9GJ— Greeks.live (@GreeksLive) November 15, 2024
The maximum pain point, the price at which most options would expire worthless. Is set at $80,000 for Bitcoin and $3,000 for Ethereum. This data is crucial as it highlights price levels that could cause substantial losses for option holders if the market fails to move toward these points.
The Crypto Market Amid New Political Factors
As for the current market situation, Bitcoin is hovering around $88,000 after a 15% surge over the past week. However, the cryptocurrency experienced a slight correction in the last 24 hours after reaching an all-time high of $93,000. Ethereum, on the other hand, remains above $3,000, having risen by 2.8% over the week. Despite this rebound, it is still far from its all-time high of $4,600.
Analysts have also highlighted that recent increases in cryptocurrency prices have driven a rise in implied volatility. However, volatility for longer-term options has remained relatively stable.
In this context, an external element could further influence the markets: Donald Trump’s victory in the U.S. elections, coupled with the potential role Elon Musk might play as head of the newly created Department of Government Efficiency
