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On Friday, $1.1 billion in Bitcoin options are set to expire, potentially affecting the BTC price, which briefly dipped below $60,000 earlier in the day.
Key Notes
A total of 18,271 Bitcoin options contracts will expire, with a put-to-call ratio of 0.90 and a maximum pain point at $62,000.According to 10x Research, Bitcoin is anticipated to either break out or see a significant decline by Q1 2025.Alongside Bitcoin, $510 million in Ethereum options will also expire, with 212,175 contracts having a put-to-call ratio of 0.40 and a maximum pain point at $2,450.On Friday, $1.1 billion in Bitcoin options are set to expire which could trigger a short-term price impact pushing BTC BTC $61 174 24h volatility: 0.0% Market cap: $1.21 T Vol. 24h: $30.28 B price under $60,000 earlier today. In comparison to the last week, there’s a significant surge in the number of Bitcoin contracts set to expire today.
As per the data on the crypto derivatives platform Deribit, a total of 18,271 Bitcoin options contracts will expire today along with a put-to-call ratio of 0.90 and a maximum pain point of $62,000. The max point is an indicator that frequently influences market dynamics.
It represents the strike price at which the expiration of options will lead to the largest financial losses for all option holders who have entered contracts at that price.
For Bitcoin, the upcoming options expiry indicates a bullish outlook despite taking a brief dive under $60,000 earlier today. With a maximum pain point set at $62,000, the leading cryptocurrency is currently trading at $60,612, significantly below its strike price.
Furthermore, the recent surge in volatility comes on the backdrop of macro developments with the Consumer Price Index (CPI) data showing hotter-than-expected inflation for the month of September. this has further reduced the scope for the Federal Reserve to announce a major rate cut in November next month.
Over the past nine months, Bitcoin has been trading in a broad range around the $60,000 mark, an unusual period of stability that is unlikely to continue. In the latest report, 10x Research stated that by the first quarter of 2025, Bitcoin is expected to either break out or experience a substantial decline.
It also noted that several upcoming events are likely to impact Bitcoin’s price, making it crucial for investors to stay alert and avoid complacency during this pivotal time.
Ethereum Options Expiry Shows Bearishness
Along with the Bitcoin options, $510 million in Ethereum options will expire on Friday. As per the Deribit data, a total of 212,175 contracts will expire today featuring a put-to-call ratio of 0.40 and a maximum pain point of $2,450. As of press time, ETH ETH $2 418 24h volatility: 0.7% Market cap: $291.09 B Vol. 24h: $14.40 B is trading at $2,410, much below its strike price.
Put option buyers for BTC and ETH are currently positioned to gain from the market’s performance. As the market continues to underperform, option sellers are expected to drive prices higher in an effort to mitigate their losses.
In their report, 10X Research noted that they are bearish on Ethereum citing disappointing revenue performance and a lack of clear direction for the cryptocurrency. The firm emphasizes that Ethereum requires a guiding vision and suggests that the development team must enhance its communication efforts regarding the platform’s narrative. Currently, the responsibility of defining Ethereum’s identity appears to be falling to external entities, such as BlackRock.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
