Bitcoin and Ethereum Options Expiry Sparks $3 Billion Volatility Bitcoin Drops 6000 in a Day

Today marks a significant event in the cryptocurrency market as over $3 billion worth of Bitcoin and Ethereum options are set to expire, potentially leading to heightened volatility and price fluctuations. This expiry comes at a time when the market is already experiencing significant uncertainty, with Bitcoin prices swinging by up to $6,000 within a single day. Traders are adapting their strategies in response to this extreme volatility, seeking quick entries and exits to mitigate risks.

Bitcoin’s options expiry today involves 29,005 contracts with a notional value of $2.54 billion. The maximum pain point, which is the price at which the asset will cause the most financial losses to option holders, is set at $89,000. This indicates that a significant number of option holders are at risk of financial losses if the price of Bitcoin deviates from this level. The put-to-call ratio for Bitcoin is 0.67, suggesting a higher prevalence of call options over put options, which reflects a bullish sentiment among traders.

Ethereum is also experiencing a significant options expiry today, with 223,395 contracts worth $481.9 million set to expire. The maximum pain point for Ethereum is $2,300, and the put-to-call ratio is 0.72, indicating a similar bullish sentiment among Ethereum traders. The maximum pain point in the crypto options market represents the price level that inflicts the most financial discomfort on option holders, and the put-to-call ratios below 1 for both Bitcoin and Ethereum indicate a higher prevalence of purchase options (calls) over sales options (puts).

Market sentiment remains bearish, with traders expressing frustration over the extreme volatility and choppy price action. Bitcoin’s sharp intraday swings have made it challenging to establish a clear directional trend, leading to what traders describe as “scam both ways” conditions. Most traders are watching the 87,000-89,000 range as key resistance, with 82,000 noted as a recent bottom, though there is significant disagreement on whether a sustainable bottom has been found.

The pronounced put skew reflects the broader pessimism, as traders continue to favor downside protection despite occasional upward moves. Analysts observe that traders are adjusting their strategies amidst the high volatility, with several traders selling calls at the 8