$3.29 Billion in Bitcoin and Ethereum Options Set to Expire, Triggering Volatility

The crypto market is set to experience significant activity as $3.29 billion in Bitcoin and Ethereum options are set to expire. This event could trigger short-term price volatility and impact traders' profitability. Bitcoin options account for $2.88 billion of this total, while Ethereum options represent $417 million. According to data, 35,176 Bitcoin options will expire, slightly higher than the previous week's 29,005 contracts. These options have a put-to-call ratio of 0.74 and a maximum pain point of $86,000, indicating a generally bullish sentiment despite Bitcoin's recent descent from the $90,000 mark.

Meanwhile, 220,301 Ethereum options will expire, down from 223,395 last week. With a put-to-call ratio of 0.69 and a maximum pain point of $2,100, these expirations could influence Ethereum's short-term price movement. As the options contracts near expiration at 8:00 UTC, Bitcoin and Ethereum prices are expected to approach their respective maximum pain points. According to data, Bitcoin was trading at $81,992, and Ethereum was at $1,891 at the time of writing. This suggests a potential recovery for both cryptocurrencies as smart money aims to move them toward the "max pain" level, where the highest number of contracts expire worthless.

Analysts have posed the question of whether the downward trend in "max pain" will continue or if a reversal is imminent. Price pressure on Bitcoin and Ethereum is likely to ease after 08:00 UTC on Friday when the contracts are settled. However, the sheer scale of these expirations could still fuel heightened volatility in the crypto markets. Market sentiment is predominantly bearish in the short term, with traders watching key support levels and discussing a potential bottom for Bitcoin, with some suggesting $60,000 as a possible downside target. Analysts also note that some believe tariffs and inflation are more significant market drivers than geopolitical events.

Analysts have also discussed option flows in the crypto market, focusing on Bitcoin derivatives trading. They indicate shifts in market sentiment and trading strategies that saw put buyers and call sellers profit from the March 11 price dip to 76,500 levels, followed by a less supported bounce back due to heavy selling of calls above $90,000. This highlights a strategic rotation by traders, moving from overly optimistic March and June call positions to more conservative April and May calls, reflecting adjustments to market volatility.