U.Today – Major Options Expiration Impacting Crypto Market

Significant options contracts for Ethereum and Bitcoin have recently expired, totaling $2.7 billion in notional value within the cryptocurrency market. Traders and investors might adjust their positions in the coming days, possibly causing price fluctuations.

A total of 21,000 options contracts for Bitcoin ended, reflecting a put/call ratio of 0.83. At a maximum pain point of $98,000, option holders experienced the most considerable losses, aligning with Bitcoin’s price consolidation around the psychological level of $100,000. The price chart indicates ongoing bullish momentum, as Bitcoin trades above crucial support levels like the 50 EMA.

However, trading volume has decreased, likely due to seasonal holiday effects that traditionally lower market activity in the U.S. and Europe. A potential support test around $95,000 could occur, but breaking above $102,000 might restore market optimism.

On the Ethereum front, 164,000 options contracts expired with a put/call ratio of 0.68 and a maximum pain point of $3,700. Ethereum's price chart shows a stable recovery from the 26 EMA, indicating that buyers are entering at key points. Its recovery amidst expiration suggests rising demand, though the holiday season may confine price movements to between $3,500 and $3,900.

Historically, markets experience brief volatility after options expirations as traders adjust their positions. Thus, the current combination of price consolidation and limited trading activity could lead to irregular movements.

The expired maximum pain points — $98,000 for Bitcoin and $3,700 for Ethereum — are key reference levels, but the reduced trading may delay significant trend shifts. Traders should monitor any deviations from these levels for insights into the market direction heading into 2025.

This article was originally published on U.Today.