Bitcoin and Ethereum price forecasts amid $2.6 billion worth of options expiration

The cryptocurrency market will see $2.639 billion worth of Bitcoin (BTC) and Ethereum (ETH) options contracts expire today. This huge expiry may affect short-term price action, especially in light of… Volatility It has been seen in both assets over the past few days.

With Bitcoin options worth $1.9 billion and Ethereum worth $712 million, will cryptocurrency markets see an extension of volatility or see a flat run through 2025? Here’s what the expiration of these options means for BTC and ETH prices.

First Crypto Options Expiration in 2025: Options worth more than $2.6 expire

Data on Deribit shows that today’s Bitcoin options expiration includes 19,885 contracts, compared to 19,885 contracts. 88,537 contracts last week. Likewise, the total number of expiring Ethereum options stands at 205,724 contracts, down from 796,021 contracts the previous week. The disparity stems from last week’s contracts, which were marked by the year-end expiration of options.

For Bitcoin, expiring options have a maximum pain point (strike price) of $97,000 and a put-to-call ratio of 0.69. This indicates an overall bullish sentiment despite the ongoing struggle the leading cryptocurrency is facing to reclaim the $100,000 level.

In comparison, the Ethereum contracts expiring today have a maximum pain price of $3,400 and a call-ask ratio of 0.81, reflecting similar market expectations. When the buy-to-sell ratio is less than 1, more traders bet on rising prices.

in Options tradingThe strike price is a crucial metric that often guides market behavior. It represents the price level at which most options expire worthless, causing maximum financial “pain” to traders as options expire worthless.

Traders and investors should prepare for volatility Options Expirations often cause short-term price fluctuations, creating uncertainty in the market. Specifically, the price of the asset tends to… Attracted towards price To improve profits for option sellers, who, in most cases, are large financial institutions for smart money.

According to BeInCrypto data, BTC was traded for $96,912 As of this writing, while ETH is trading for $3,465. Thus, the gravitation towards their respective strike prices may indicate a modest increase in the value of Bitcoin and a slight decrease in the price of Ethereum, and thus potential volatility.

“Volatility levels have maintained a constant level and shape throughout the post-Christmas period. The expiration of a large proportion of year-end open interest in options in December did not produce the fireworks some had expected. Instead, Ethereum’s volatility is trading lower by more than Five points while Bitcoin displays the same slightly sharper shape it has been in since Christmas Day,” Derrbit subscriber.

However, even in the face of potential volatility, markets usually stabilize after a short period as traders adjust to the new price environment. With today’s high-volume expiration, traders and investors can expect similar results, which could impact short-term market trends.