Bitcoin and Ethereum Prices Fluctuate Amid Options Expiry and Market Uncertainty

Amidst market volatility, Bitcoin (BTC) and Ethereum (ETH) prices find respite. Traders remain cautious, awaiting the expiry of over $2 billion in options contracts this Friday. Despite the recent pullback, analysts at QCP Capital predict a potential rebound in BTC price to $70,000 this week, citing sustained demand for long positions and upward momentum in spot Bitcoin ETF inflows.

Bitcoin and Ethereum Prices Fluctuate Amidst Market Volatility and Options Expiry

In the midst of ongoing market volatility, Bitcoin (BTC) and Ethereum (ETH) prices have experienced temporary respite, with traders exercising caution amid uncertainty. However, analysts anticipate a significant options expiry event later this week, potentially influencing market dynamics.

Options Expiry Looms

The crypto market eagerly awaits the expiry of over $2 billion worth of Bitcoin and Ethereum options on Friday, hoping to resolve some of the prevailing uncertainty.

Over 18,060 BTC options, representing a notional value of $1.21 billion, are set to expire, with a put-call ratio of 0.63. The "max pain point," indicating the price level that would result in maximum losses for options traders, is currently at $68,000, suggesting potential downward pressure on Bitcoin. Despite a decrease in implied volatility (IV), traders still expect significant price fluctuations.

In the case of Ethereum, approximately 270,441 ETH options, with a notional value of $0.89 billion, are scheduled to expire, exhibiting a put-call ratio of only 0.38. The max pain point for ETH stands at $3,400, surpassing its current price of $3,287. This suggests a possible decline in ETH value if it fails to recover above the max pain point.

QCP Capital Predicts BTC Surge

QCP Capital analysts remain optimistic, predicting a potential rebound in Bitcoin's price to $70,000 this week. They attribute this forecast to sustained demand for BTC long positions and increased momentum in spot Bitcoin ETF inflows.

ETHBTC Faces Challenges

ETHBTC, a pair trading ETH against BTC, has encountered a critical support level after falling below 0.05. Analysts have observed significant selling of ETH calls, leading to a decrease in volumes and downward pressure on ETH prices.

ETHBTC has reached a two-year low as the next Bitcoin halving approaches. While analysts anticipate a potential bounce from these levels, they advise hedging gains due to the possibility of further declines.

Current Market Prices

At the time of writing, Bitcoin trades at $67,105, having reached a 24-hour high of $69,291. Ethereum, on the other hand, hovers around $3,285, having dropped from $3,443 following hawkish comments from a Federal Reserve official.

The crypto market remains closely monitored as options expiry and broader market conditions continue to shape the trajectory of Bitcoin and Ethereum prices.