Key Points
- Options contracts for Bitcoin and Ethereum worth $3 billion set to expire, potentially causing market volatility.
- Market makers adjust positions during holiday trading lull, with $98K Bitcoin and $3,700 Ethereum levels in focus.
Options contracts for Bitcoin (BTC) and Ethereum (ETH) valued at $3 billion were set to expire on December 13.
This often results in heightened market activity, as traders anticipate possible price shifts.
Bitcoin and Ethereum Options Near Expiry
At the time of writing, Bitcoin was valued at $100,073, while Ethereum traded at $3,881.12.
Bitcoin had $2.1 billion in options contracts nearing expiration, with a put-call ratio of 0.83.
This suggests more call options, or bullish bets, than puts, or bearish bets.
The max pain point, the price at which most options will become worthless, is $98,000 for Bitcoin.
With a market cap of $1.98 trillion and a circulating supply of 20 million coins, Bitcoin’s next moves are closely watched by traders.
The 24-hour trading volume for BTC has hit $94.48 billion, indicating increased activity as the expiration nears.
Ethereum Options and Market Makers
Ethereum has $640 million in options contracts set to expire, with a put-call ratio of 0.68.
This shows even stronger bullish sentiment than Bitcoin.
The max pain point for Ethereum is $3,700, a critical level that traders are keeping an eye on.
Ethereum’s trading volume over the past 24 hours is at $44.47 billion, with a market cap of $467.65 billion and a circulating supply of 120 million ETH.
Despite a slight 0.63% price drop in the last 24 hours, Ethereum’s week-to-week performance remains stable, reflecting a cautious approach among traders.
Market makers are repositioning during this period of expirations, which coincides with lower trading volumes over the holiday season, according to Greeks.live.
Analysts have observed increasing Implied Volatility (IV), suggesting that markets are bracing for larger price fluctuations.
The correlation between crypto prices and U.S. stock markets is growing, indicating that swings in equities’ prices may impact cryptocurrency movements.
Impact of Economic Data
The expiration of these options coincides with a week of economic developments in the U.S.
Inflation rate for November rose to 2.7%, with core CPI at 0.3%, pointing to ongoing inflationary challenges.
While a rate cut from the Federal Reserve is anticipated, there are concerns about whether inflation will postpone easing.
These factors, coupled with the expiration of billions in crypto options, could lead to increased market activity.
