The cryptocurrency market is in preparation for a major event as a significant number of Bitcoin and Ethereum options expire. Here are the details…
Bitcoin and Ethereum options are closing
Investors are preparing to fluctuate in the period from Friday’s monthly expiry to the US Federal Reserve’s (FED) interest rate hike decision on May 3. Investors are waiting for BTC to surpass the psychological level of $30,000. He also hopes for ETH to rise above $2,000. Meanwhile, Bitcoin and Ethereum prices are under selling pressure. The market expects a massive Bitcoin and Ethereum options expiration, with 105.8k BTC options worth $3.1 billion expiring on April 28. The buy/sell ratio is 0.86, and there are 56,908 buy and 48,894 sell open positions. The “maximum pain” point is at $27,000, where the largest number of options holders face losses. Currently, BTC is trading close to the $29,500 level.
In addition, 807.2 thousand ETH options worth $1.55 billion will expire. The buy/sell ratio is 0.78, and there are 452.633 buy and 354.620 sell open positions. The maximum pain point is at $1,800 and the current ETH price is trading above $1,900. Although BTC’s uptrend remains intact above the 50-day moving average, volatility will continue to put some pressure on the market. The US Fed is expected to raise interest rates another 25 basis points, according to CME FedWatch data. The probability of increasing the interest rates by 25 basis points is 88.6 percent, and the probability of not being increased is 11.4 percent.
DXY and whales on the move too
The US Dollar Index (DXY) also fluctuated. On this day when Bitcoin options expire, it rose by 0.17 to 101.68. Therefore, if DXY continues to rise until the Fed rate hike decision next week, the BTC price is expected to decline. Because, as we have reported as Kriptokoin.com, BTC and DXY have recently exhibited an inverse correlation.
On the other hand, ETH price may also come under pressure as whales sell and higher profits are made by traders. BTC and ETH trading volume dropped within 24 hours as traders expect volatility in the coming days. As a result, traders are watching the market carefully, hoping to make informed decisions amid uncertainty. The expiration of large amounts of Bitcoin and Ethereum options is of great importance to the market. On the other hand, the coming days will be volatile for the crypto market due to the expected US Fed rate decision.
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