In the cryptocurrency market, $2.29 billion worth of Bitcoin and Ethereum option contracts will expire today. This large expiration could impact short-term price movements, especially since both assets have been declining recently. The total amount of Bitcoin options expiring is $1.94 billion. Ethereum’s options worth $344.92 million will expire. Therefore, investors are preparing for potential volatility.
Loaded cryptocurrency options will expire today!
As you follow from Kriptokoin.com, the market is losing ground with Bitcoin today. According to Deribit data, Bitcoin options expiring includes 28,125 contracts. For Ethereum, expiring options consist of a total of 137,866 contracts. The maximum pain price for these expiring Bitcoin options is $69,000. Also, the put/call ratio is 0.92. The fact that the put/call ratio is below 1 shows that BTC is in an overall upward trend despite its 4% decline. In comparison, the maximum pain price of its Ethereum counterparts is $2,550. Additionally, the put/call ratio for the cryptocurrency is 0.69, reflecting a similar market outlook.
Expiring Bitcoin Options. Source: DeribitWith today’s high-volume expiration, investors will expect similar fluctuations that have the potential to shape short-term cryptocurrency trends. Price pressure on BTC and ETH will ease after Deribit closes contracts. Markets are also preparing for volatility due to non-farm payrolls (NFP) coming on the first of November. It is possible that this US macro data, combined with Tuesday’s US elections, will also determine the next trend. In this regard, a trader said, “There is NFP tomorrow and the US elections next week. So don’t force any action until then. Watch the market and only take clear A+ setups. Anything less isn’t worth it anyway,” he says.
According to analysts, there are very good trading opportunities!
According to Greek.live analysts, external factors such as recent price declines and the upcoming US elections have led to a slight increase in implied volatility (IV). However, BTC’s maximum pain point is at its yearly high. Therefore, analysts say that there are very good trading opportunities available in the cryptocurrency market right now. In this context, analysts make the following assessment:
Bitcoin reached $73,500 this week, just $100 away from its all-time high. However, it later shifted into high gear and fell below $70,000. The maximum pain point reached its highest level in the year this week. Ethereum has instead struggled near its yearly low and its maximum pain point has also fallen this week. The main market topic this week is the US elections and now with BTC ATM IV on November 8th near 70% and BTC oscillating near new highs, there are very good trading opportunities on all outlooks.
Max Pain theory and expectations for two cryptocurrencies
According to the latest data, the leading cryptocurrency Bitcoin was currently trading at $69,262. The leading altcoin Ethereum took a dive to $ 2,500. Its current position places BTC above its maximum pain point. However, ETH falls below this. Max Pain theory suggests that option prices tend to converge towards strike prices with the highest concentration of contracts that will expire worthless, known as maximum pain points.
For Bitcoin, this means a potential pullback towards the maximum pain point of $69,000. Additionally, it likely triggers short-term market volatility. Expiration of options often results in temporary price fluctuations. However, markets usually stabilize after a short time.
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