Bitcoin and Ethereum Options Expiry Set to Spark Volatility in Crypto Market

The cryptocurrency market is bracing itself for potential volatility as two significant options expiries approach today. According to Deribit derivatives exchange, approximately $1.74 billion in Bitcoin options and over $400 million in Ethereum options are set to expire.

Deribit's data shows that the put-call ratio for both cryptocurrencies is skewed towards bearish sentiment. The ratio indicates a higher volume of put options compared to call options, suggesting traders are leaning towards selling their assets due to concerns about rising inflation and geopolitical tensions.

The max pain price for Bitcoin is at $76,000, while Ethereum's max pain price is at $2,325. These prices represent the levels at which the highest volume of put options has been sold, indicating potential areas of support or resistance. Meanwhile, Glassnode data reveals that Bitcoin's trading below its Short-Term Holder Cost Basis at $78.9K and True Market Mean at $78K.