Cryptocurrency options are a type of derivative that gives investors the right, but not the obligation, to buy or sell a specific cryptocurrency at a predetermined price on or before a certain date. On Friday, these options will face their quarterly expiration.
The expiration of these contracts can have significant effects on the markets. BTC's max pain is predicted at $75,000, which means that if this level is reached during expiration, it could lead to increased selling pressure and potentially lower prices. ETH's max pain is estimated at $2,350, with similar implications.