After FOMC Minutes and Digital Asset Summit, Approximately $2.09 Billion in BTC and ETH Options Expire Today

After the FOMC (Federal Open Market Committee) minutes and the digital asset summit on Wednesday and Thursday, respectively, approximately $2.09 billion

Today, approximately $2.09 billion in Bitcoin (BTC) and Ethereum (ETH) options will expire following the FOMC minutes and the digital asset summit on Wednesday and Thursday, respectively.

The expiration may influence market conditions, with investors keeping an eye on potential shifts.

Over $2 Billion in Options Expiry Today

According to data from Deribit, $1.826 billion in Bitcoin options will expire today. The maximum pain point of these contracts is at $85,000.

These options include 21,596 contracts, which is slightly lower than last week’s 35,176 contracts. Despite recent volatility, the put-to-call ratio is 0.83, indicating a general bullish sentiment.

As for Ethereum, $264.46 million in options will expire today, with a total of 133,447 contracts. This figure is also lower than the previous week’s 223,395 contracts. The maximum pain point for these options is $2,000, and the put-to-call ratio is 0.62.

As the options contracts approach expiration at 8:00 UTC, Bitcoin and Ethereum prices are expected to move closer to their respective maximum pain points. According to BeInCrypto data, BTC is currently trading at around $84,414, while ETH is being exchanged for $1,977.

This suggests a small upward movement for Bitcoin and Ethereum towards the $85,000 and $2,000 strike prices, respectively. This surge could be driven by smart money's strategy in options trading, where they typically push prices towards the “max pain” level. At this point, the highest number of contracts, both calls and puts, expire worthless.

“Will we see a volatility squeeze or a slow unwind?” Deribit asked in a post on X.

Based on the Bitcoin and Ethereum put-to-call ratios, which are both below 1, it seems that there are more call options (purchases) than put options (sales).

Moreover, analysts from crypto options trading tool Greeks.live have provided insights on the current market sentiment, highlighting a divided trader community. Some expect a price drop after the FOMC meeting, as policymakers rejected further interest rate cuts, effectively disappointing the crypto market.

However, others anticipate a temporary rise before choppy conditions set in. With this, the analysts note the range between $83,000 and $85,000 as the area of interest, with expected volatility around President Trump-related developments and potential MicroStrategy (now Strategy) purchases.

“Expect chop and drift lower before heading higher again on Monday, despite the current pump not being viewed as sustainable,” Greeks.live analysts observed.

Finally, Bitget exchange CEO Gracy Chen expressed her confidence that BTC will hold above the $73,000 to $78,000 range, potentially paving the way for a rally to $200,000. Chen attributes her optimism to the US strategic Bitcoin reserve, which she believes will drive institutional legitimacy and long-term price stability.

Even as Bitget's Chen remains optimistic, traders and investors should be aware of short-term volatility. In the past, options expirations have usually caused temporary price movements, with the market stabilizing shortly after.

This calls for close monitoring of technical indicators and market sentiment to effectively manage any potential volatility.