The expiration of Bitcoin and Ethereum options is approaching! Will the market face tremendous volatility or a calm rebound?
With 31,000 Bitcoin options and 241,000 Ethereum options nearing expiration, the crypto market is facing a critical turning point. The expiration of these options could become a catalyst for future market fluctuations. The put/call ratio for Bitcoin is 0.71, indicating fewer put options and a potentially optimistic market sentiment. However, the situation for Ethereum is slightly different, as a put/call ratio of 0.63 reveals more concern, especially with ETH's maximum loss point at $2,575.
This options expiration has a theoretical total value of up to $3.77 billion (combined BTC and ETH), which will undoubtedly have a profound impact on the market. Bitcoin's maximum loss point is around $105,000, while ETH's is at $2,575. With the delivery of options contracts, significant market volatility may occur. More concerning is that the total amount of options delivered accounts for about 10% of the total open interest; compared to recent weeks, the market trading volume has significantly rebounded, and large purchases have increased, indicating that liquidity is improving and market sentiment is quietly changing.
However, as assessed by GreeksLive, institutional investors are not eager to pursue short-term explosive growth; they are more optimistic about a more moderate, long-term upward trend. This expectation of steady growth contrasts sharply with recent market fluctuations. The sharp drop in Tesla's stock price has triggered a significant pullback in both the cryptocurrency market and the U.S. stock market, especially after the publicization of the tension between Trump and Musk, which has further highlighted market uncertainty.
At this moment, the market seems to stand at a crossroads. Will there be short-term dramatic fluctuations, or a more prolonged steady rise? The moment of options expiration is approaching, and the market's fortunes are changing; are you ready to face this grand battle in the crypto market?
