Bitcoin (BTC) and Ethereum (ETH) Options Expiry Data Hint at Market Volatility Ahead

Just as the cryptocurrency market is heading for a weekly expiry, Bitcoin price BTC $97 904 24h volatility: 0.4% Market cap: $1.94 T Vol. 24h: $99.47 B has rallied to its new all-time high of $99

Bitcoin price today: BTC hits new all-time high at $99,502 as crypto market braces for a weekly options expiry.A total of $2.86 billion in Bitcoin options will expire today hinting at crypto market volatility ahead.

The substantial expiration event could trigger short-term price volatility, especially as markets eagerly anticipate Bitcoin reaching the $100,000 milestone.

A Look into the Bitcoin Options Expiry DataData from Deribit shows that 28,905 Bitcoin options contracts are set to expire on Friday, featuring a put-to-call ratio of 1.09 and a maximum pain point of $86,000.

The put-to-call ratio, which measures market sentiment, currently stands above 1, signaling bearish sentiment despite recent growth fueled by Bitcoin whales and long-term holders.

Courtesy: Deribit

While everyone is expecting a Bitcoin price breakout above $100K, there could be a brief correction ahead before it finally happens. According to crypto analyst Ali Martinez, the TD Sequential indicator has flashed a sell signal on Bitcoin’s 4-hour chart, suggesting a potential correction toward $97,085.

Courtesy: Ali Charts

However, if Bitcoin manages a candlestick close above $100,470, it could invalidate the bearish pattern. In such a scenario, BTC may climb to targets of $102,656 or $104,343, noted Martinez.

Ethereum Options Expiry and Analyst PredictionsA total of 164,687 Ethereum options contracts are set to expire today, with a put-to-call ratio of 0.66 and a maximum pain point of $3,050. The lower put-to-call ratio reflects a generally bullish sentiment in the ETH market.

As of press time, Ethereum is trading at $3,389. Analysts at Greeks.live suggest Ethereum ETH $3 291 24h volatility: 1.7% Market cap: $397.14 B Vol. 24h: $48.59 B could see continued upward momentum in line with the bullish put-to-call ratio, while Bitcoin appears poised for a potential correction. They added:

“With about 8% of positions expiring this week, the big rally in Ethereum has led to a significant increase in ETH major term options IV [implied volatility], while BTC major term options IV has remained relatively stable. The market sentiment remains extremely optimistic at this point”.

Analysts highlight that despite Bitcoin’s risk of a correction, the broader market rally may prevent a significant pullback. This could be due to the substantial capital inflows into ETFs, particularly BlackRock’s newly launched IBIT options. Yesterday, BlackRock’s IBIT clocked $5 billion in trading volumes.

Also, the total inflows into spot Bitcoin ETFs yesterday crossed over $1 billion with IBIT alone contributing more than $600 million.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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