Bitcoin (BTC):
Approximately 76,000 BTC options contracts will expire, with a nominal value of about 5 billion USD.
Max pain: 98,000 USD – the price at which option buyers incur the most losses.
Currently, BTC is trading around 92,599 USD, below the max pain level.
Ethereum (ETH):
The value of expiring ETH options contracts is about 1.1 billion USD.
Max pain: 3,000 USD.
The current price of ETH is around 1,780 USD, also below the max pain level.
🔍 Market Impact Analysis
Pressure from max pain: A max pain price higher than the current price may incentivize market makers to push prices closer to this level to maximize profits from options contracts.
Ratio of "out-of-the-money" (OTM) contracts: With the majority of current options contracts being OTM, many investors may face their contracts expiring worthless, leading to significant losses.
Market volatility: The expiration of a large number of options contracts can cause sharp price volatility, especially if market makers implement risk hedging strategies (delta hedging) to minimize losses.
📈 Conclusion
The expiration event of options contracts this Friday is a significant factor that could affect the price volatility of BTC and ETH. Investors should closely monitor market developments in the coming days, especially price levels near max pain, to make appropriate trading decisions.
