The expiration of $2.85 billion in $BTC and $ETH options raises concerns about a potential market crash, as it may lead to increased volatility in the cryptocurrency market today.

On-chain data indicates that this expiration will occur today, which could have a substantial impact on the crypto market.

Following a recovery in investor sentiment towards crypto assets, many cryptocurrencies, including Bitcoin, have experienced significant gains.

Nevertheless, experts express apprehension regarding possible volatility following the expiration of these options. Let us explore this further.

What’s Happening in the Crypto Market Today?

Today's crypto market heatmap indicates a split between bullish and bearish dominance. Certain cryptocurrencies, including Bitcoin,

Dogecoin, and Cardano, have experienced slight increases over the past 24 hours, while others such as Solana, Ethereum, and various leading altcoins have seen declines.

In spite of the negative market trends, the global market capitalization has exceeded $3 trillion, currently standing at $3.01 trillion, with a trading volume of $83.89 billion, reflecting an increase of nearly 5% today.

Nevertheless, apprehensions are escalating, and fears of a potential crash are intensifying as options worth $2.85 billion in BTC and ETH reach their expiration.

BTC and ETH Option Expiry Breakdown

The Deribit exchange reports indicate that 26,949 BTC options are set to expire today, with the maximum pain point situated between $90,000 and $91,000.

This maximum pain point represents the price level at which the majority of options will expire, potentially exerting downward pressure on the market.



Consequently, this situation may lead to a notable decline in the Bitcoin price, which is currently at $97,045.

The Put/Call ratio across major cryptocurrency exchanges is marginally bullish at 0.95, whereas it appears slightly bearish on the Deribit exchange.

Furthermore, investors have accumulated substantial call options exceeding $95,000, anticipating an additional surge towards $100,000.

In the context of Ethereum, 184,296 ETH options are set to expire today. The Put/Call ratio, ranging from 0.88 to 0.92, reflects optimistic market sentiments.

Currently, Ethereum is priced at $1,834, with the maximum pain point identified at $1,800, which corresponds to the expiration of the majority of ETH options.

The investors' response to this cryptocurrency is varied; some are engaging in short selling while others are taking long positions in expectation of additional profits.

What to Expect From the Crypto Market?

The cryptocurrency market is currently experiencing volatility, and the impending expiration of $2.85 billion in BTC and ETH options may exacerbate this situation.

Given the present circumstances, Bitcoin's price could respond in three potential ways: it may plummet to $90,000 as traders anticipate a minimum payout, rise to $100,000 due to call staking, or stabilize with sideways movement amid neutral market sentiments. Similarly,

Ethereum's price may exhibit comparable behavior; however, it is essential to take into account additional variables such as the US job data report.

In summary, the options expiration is likely to have a significant impact on these cryptocurrencies and the broader market.

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