Bitcoin and Ethereum Options Expiry Today Could Spark Price Swings as Market Makers Adjust Positions Ahead of Christmas

The crypto market has seen significant gains lately, riding what many call the “Trump rally.” However, with such a massive expiration, the market's next move is uncertain.

Crypto options contracts expiring on December 18 will determine the next price move in a crucial market event.

The crypto market is experiencing a moment of anticipation as a massive volume of options contracts are set to expire on December 18. This event is expected to influence the next price movement in the digital asset market.

As the clock ticks down, the بازار کریپتو has seen a largely bullish trend, with both Bitcoin and Ethereum prices rising in recent days. However, the market's next move remains uncertain, and the options expiration is set to play a critical role in determining the price direction.

This batch of options contracts expiring on December 18 is valued at billions of dollars, and their expiry is set to impact the بازار کریپتو. These contracts expiring on Wednesday are valued at $2.077 billion for Bitcoin and $0.644 billion for Ethereum.

Bitcoin Options Expiry to Impact Prices

The options expiring on December 18 are a crucial factor in بازار کریپتو price movements. As per Deribit data, 20,815 Bitcoin options contracts, valued at a combined $2.077 billion, are set to expire on December 18.

This event is significant as the expiring contracts span across various strike prices and types, ultimately affecting the overall market sentiment and price direction. Notably, the put-to-call ratio for these expiring contracts stands at 0.83, indicating that more traders are betting on price increases (calls) than decreases (puts). This signals a bullish market sentiment.

Interestingly, the maximum pain point for Bitcoin is positioned just below the current spot price, at $98,000, as reported by Brave New Coin’s Bitcoin Liquid Index. Maximum pain point indicates a price range that would result in the highest losses for options traders.

This price point is crucial as it can influence market makers' strategies and impact the بازار کریپتو price movements in the lead-up to the options expiry.

Moreover, a recent analysis by Greeks Live highlights a greater proportion of recent Block call options trades, with a daily average of over 30%. In previous years, the Christmas season in Europe and the US would lead to a decrease in trading activity. However, this year, the بازار کریپتو is being influenced by US stock بازار, which might amplify this trend.

As the Christmas season and year-end deliveries approach, market makers are adjusting their positions accordingly. The بازار کریپتو is experiencing a surge in bullish options trades, indicating optimism among traders for a positive close to the year.

The prospect of a crypto-friendly Trump administration in 2025 is also adding to the bullish mood in the بازار کریپتو. Traders are anticipating policies that could support the crypto industry, adding a layer of optimism to the current market dynamics.

While Bitcoin has taken the lead in the crypto price rally, showing a 0.7% increase in the past 24 hours, Ethereum also joins the options expiry drama. About 164,330 Ethereum contracts, valued at nearly $0.644 billion, are also set to expire on December 18.

According to Deribit, the expiring options span across various strike prices and types, influencing the next price move in the digital asset market. Notably, the put-to-call ratio for these expiring contracts is 0.68, indicating more traders are betting on price increases.

بازار کریپتو Prices to Be Impacted by Options Expiry

This event is crucial as بازار کریپتو prices have been largely influenced by options traders in recent times. بازار کریپتو prices have soared to new highs in 2024, with both Bitcoin and Ethereum prices rising significantly.

However, بازار کریپتو prices have shown signs of slowing down in recent days, especially with the recent economic data and the upcoming holidays. بازار کریپتو prices could experience a strong impact from the options expiring on December 18.

As بازار کریپتو prices have shown a variance from their all-time highs, options traders have actively engaged in strategies like Put Value Play (PVP) to maximize profits in a shorter duration. This strategy involves selling a put option while simultaneously purchasing a lower-strike put option to capitalize on بازار کریپتو price movements.

بازار کریپتو prices have largely remained in a bullish trend as a result of these strategies, with بازار کریپتو prices increasing by 0.55% in the past 24 hours, according to Brave New Coin’s Ethereum Liquid Index. Maximum pain point for ETH is positioned just below the asset’s spot price.

This price point is crucial as it can influence بازار کریپتو price movements in the lead-up to the options expiration. بازار کریپتو prices have yet to hit a new all-time high this year and are trading slightly below $4,000.