According to data from Deribit, the cryptocurrency derivatives platform, more than 30,000 BTC options with a notional value of $2.6 billion expire today. Open interest volume has decreased as traders adjust their positions in light of declining implied volatility and the proximity of the holidays, with a neutral put-call ratio of 0.75.
Additionally, the maximum loss price is $88,000 and the probability of expiration above the strike price of $88,000 is significantly lower, according to the data. Traders expect the price of BTC to remain between $85,000 and $88,000 until the massive options expiration on December 26.
“The open interest of BTC is concentrated around 88K, with a slightly heavier selling positioning, pointing to a relatively contained expiration unless the spot breaks the range,” highlighted Deribit.
Meanwhile, 160,000 Ethereum options with a notional value of nearly 500 million dollars expire today. The put-call ratio is 1.02, indicating bearish sentiment among traders amid sudden price fluctuations.
The maximum critical point is $3,100, above the current market price of $2,960. Additionally, traders anticipate a price drop to $2,850 in the coming days.
In the last 24 hours, the volume of call options has remained significantly higher than that of put options. The put-call ratio is 0.70, indicating positive sentiment among options traders.
Deribit claims that the positioning of ETH is more distributed among the strike prices, with notable bullish interest above $3,400. The current positioning indicates traders' patience for liquidation, waiting for a clearer catalyst instead of forcing direction.
According to data from Goldman Sachs, markets are anticipating strong fluctuations today amid the largest "triple witch" event in history, with a value of 7.1 trillion dollars. The triple witch is a quarterly event where stock options, index options, and index futures expire simultaneously, often causing high volatility.
In the last three Triple Witch events, Bitcoin and the cryptocurrency market in general experienced massive pullbacks.
The expiration of cryptocurrency options and traditional financial derivatives could increase price fluctuations as traders rush to close or renew positions. Attention is focused on how the cryptocurrency market and stock markets absorb the impact.
Matrixport revealed its bearish bias on the price of Bitcoin, as the four-year cycle remains intact. The cryptocurrency expert dismissed market assumptions that the Bitcoin cycle would develop differently this time.
10x Research and on-chain data indicated a new decline in the price of BTC, especially due to tax loss harvesting and a weak technical structure. The cryptocurrency market could also react to the Bank of Japan's (BOJ) interest rate hike today, which has historically caused a drop of 20-30%.
The price of BTC is currently trading at $87,944, with a 1% increase in the last 24 hours. Trading volume has increased by 31% in the last 24 hours.
