Crypto Market Braces for Volatility Ahead of Options Expiry

The cryptocurrency market has been experiencing increased volatility due to geopolitical tensions in the Middle East and macroeconomic events. This volatility is expected to continue ahead of the $3.7 billion options expiry on Deribit on Friday, which could provide further cues on the market direction.

BTC and ETH prices have fallen by more than 2% over the last 24 hours, while gold prices have climbed amid renewed volatility in global markets. The new unilateral tariff plans from President Donald Trump have also put pressure on the markets and weakened the US dollar.

According to Deribit data, there are 28K BTC options with a notional value of over $3 billion set to expire on Friday, indicating a slightly bearish sentiment among traders. The max pain point is at $107,000, suggesting a high chance of further retracement in BTC price.

Meanwhile, Ethereum's open interest has declined continuously since its rally above $3000, resulting in profit booking by some investors. The put-call ratio and max pain data suggest that sentiment has turned bearish for Ethereum, with traders awaiting Friday's options expiry for further cues on the market direction.