Bitcoin Surges 7% as $5 Billion in Options Expire

The crypto market is on edge as over $5 billion in Bitcoin and Ethereum options are set to expire today. This includes 37,000 Bitcoin options with a notional value of $4.35 billion and 240,000 Ethereum options with a notional value of $710 million. The expiration of these options is a critical moment for traders and investors, as it can influence the direction of the market in the coming days.

The max pain price for Bitcoin options is at $108,000, significantly lower than the current market price of Bitcoin. At the time of writing, the put-call ratio is 1.07, suggesting traders are betting more on puts than calls. However, the call volume has doubled the put volume in the last 24 hours, with a put-call ratio of 0.53. This shift comes as Bitcoin price hit an all-time high of $118,410, surpassing the July price target set by Matrixport.

For Ethereum, the max pain price is at $2,600 and the put-call ratio is 1.12, indicating bearish sentiment among derivatives traders. However, in the last 24 hours, traders have bet more on calls than puts as Ethereum price surpassed $3,000. The put-call ratio was 0.52 at the time of writing, and market sentiment has improved with ETH implied volume falling slightly to 60%.

According to the analyst's forecast, the options market is far from FOMO and institutional investors are very muted. At the time of writing, BTC price is trading nearly 7% higher at $118,200. Experts predict Bitcoin price to hit as high as $135,000 before the start of the bear market. Whereas, ETH price is trading more than 8% higher at $3,020.

The expiration of these options comes at a time when the crypto market is already experiencing heightened activity. The recent all-time high for Bitcoin underscores the growing acceptance and adoption of crypto. The expiration of these options could provide additional momentum for Bitcoin's price, as traders and investors react to the market's sentiment and expectations. The notional value of these options highlights the substantial interest and investment in these digital assets.