Crypto Market Drops 0.5% Amid $4 Billion Options Expiry

Bitcoin (BTC) and Ethereum (ETH) prices have declined to levels last seen in mid-May, wiping out all recent gains due to geopolitical tensions in the Middle East. Traders are preparing for a significant event: the expiry of $4 billion in Bitcoin and Ethereum options on Friday. Recent macroeconomic events and the upcoming options expiry are adding to the selling pressure in the crypto market, which is already experiencing high uncertainty and volatility.

Deribit, a prominent options exchange, will see the expiry of 32,000 BTC options with a notional value exceeding $3.3 billion on Friday. At the time of writing, the put-call ratio stands at 1.10, indicating a bearish sentiment among traders. The max pain point for Bitcoin is at $106,000, which is higher than the current price. This suggests that traders may be exiting their positions or facing liquidations.

In the last 24 hours, the put-call ratio has been 1.13, showing that traders are purchasing more put options than call options. This further underscores the increasing bearish sentiment in the market. Bitcoin's price has decreased by nearly 0.5% in the past 24 hours, trading at $104,806 at the time of writing. The 24-hour low and high for Bitcoin were $103,602 and $105,329, respectively.

For Ethereum, over 2,182,000 ETH options with a notional value of $0.6 billion are set to expire. The put-call ratio for Ethereum is 0.69, with the max pain point at $2,600. Despite a rising put-call ratio of 0.74 at the time of writing, the call volume has been higher than the put volume over the last 24 hours. This suggests a slightly bullish tilt in Ethereum's positioning, with calls dominating the puts volume.

Ethereum's price has also decreased by over 0.5%, trading at $2,524 at the time of writing. This indicates rising selling pressure on Ethereum as the price has slipped below the max pain price. Technical indicators for Ethereum suggest a potential recovery in the coming days.

Overall, the crypto market is experiencing significant selling pressure ahead of the $4 billion options expiry. The bearish sentiment, as indicated by the put-call ratios and max pain points, suggests that traders are cautious and may be exiting their positions or facing liquidations. Despite the current volatility, technical indicators for Ethereum point to a potential recovery, offering a glimmer of hope for traders in the midst of the market uncertainty.