Today (11), over $5.03 billion in Bitcoin (BTC) and Ethereum (ETH) options will be nearing expiration, according to Deribit. This movement may generate volatility, especially in the early hours of the European session, although markets tend to adjust quickly after expiration.
Of the total, BTC options represent $4.3 billion, with 36,970 open contracts. The Put-to-Call ratio (PCR) is at 1.06, indicating a slight predominance of put options. The maximum pain level, that is, the price at which contracts expire with the least value for traders, is $108,000.
For ETH, the notional value is $712.35 million, with 239,926 open contracts and a PCR of 1.11. The maximum pain level is at $2,600. In the previous week, expirations totaled $3.6 billion in notional value, with 27,384 BTC contracts and 237,274 ETH contracts. The PCR also exceeded 1, suggesting a cautious market pattern.
Bitcoin options that expire. Source: Deribit
Market sentiment remains uncertain
The PCR above 1, for both BTC and ETH, suggests that investors are more inclined to protect their portfolios against declines than to bet on rises. This may also reflect uncertainty about the market direction in the short term.
Analysts from Greeks.live highlighted the lack of consensus on the price trajectory. Instead of decisions based on technical analysis, many recent movements seem to have been driven by events and news. Extreme leverage activity has also been pointed out as a risk factor.
Traders are discussing positions with 500x leverage, considered high risk under current conditions. There are also mentions of strategies with a 100% confidence signal, indicating a high appetite for risk, Greeks.live reported.
Prices exceed maximum pain levels
Today (11), Bitcoin hit another all-time high reaching $118,254, after a 6% increase in the last 24 hours. This price jump generated a wave of activity in the markets, driven by a combination of technical and fundamental factors.
Meanwhile, ETH was quoted at $2,970, with an increase of almost 7% in the last 24 hours. Although both are above their respective maximum pain levels, prices may still approach these values as contracts expire.
Ethereum options that expire. Source: Deribit
The concept of maximum pain is relevant in crypto derivatives trading as it represents the point at which the most options lose value. According to the Max Pain theory, prices tend to move towards this level in the hours leading up to expiration, although this does not always occur precisely.
With the significant expiration this Friday, it is likely that the market will register adjustments, with localized impacts on short-term trends, especially over the weekend.
The article '$5 billion in Bitcoin and Ethereum options expire today' was first seen on BeInCrypto Brazil.
