Bitcoin and Ethereum Options Expiry: Is Market Volatility Coming Before US Jobs Data Release?

More than $10 billion in Bitcoin and Ethereum options are set to expire today as the crypto market could be bracing for strong volatility ahead of the US Jobs data release next week. The Bitcoin price is currently flirting around $104,500 staying relatively flat after FOMC’s decision to keep interest rates ahead this week. As BTC lacks a catalyst, all eyes will be on the US labor market ahead and the upcoming US PCE inflation data scheduled for later today.

$8.34 Billion in Bitcoin Options to Expire Today

Deribit data reveals that the upcoming Bitcoin options expiration includes 80,179 contracts, worth a staggering $8.4 billion, a significant increase from last week’s 30,645 contracts. The put/call ratio stands at 0.68, with a max pain price of $98,000.

The put-call ratio is below 1 suggesting that a bullish sentiment still persists amid the Bitcoin price surge to $106K levels after the FOMC meeting. However, the size of the Bitcoin Options expiry suggests that investors might see strong volatility as traders position themselves ahead of the expiry period.

$1.94 Billion in Ethereum Options To Expire Today

A total of $1.94 billion in Ethereum options will expire today with a total of 603,426 contracts expiring, against 173,830 contracts expiring the previous week. The Ethereum options have a max pain price of $3,300 and a put-to-call ratio of 0.43, indicating a bullish sentiment.

The Ethereum price has been flirting largely around $3,200 after a drop to $3,000 earlier this week. Notably, ETH price today is trading 1.67% up at $3,244, however, the daily trading volume has dropped by 20% to under $20 billion. On-chain indicators like the Ethereum MVRV ratio suggest the possibility of a 40% Ethereum price crash ahead.

Investors Await the US Jobs Data

Amid the speculations over Ethereum and Bitcoin options expiry, prominent crypto analyst Benjamin Cowen shared his outlook on Bitcoin’s trajectory. He emphasized that the next week could be a pivotal moment for the leading cryptocurrency. Cowen’s analysis hinges on the upcoming labor market data, particularly the unemployment rate.

“If the unemployment rate lands at 4.1% or 4.2%, there’s a higher probability, in my opinion, that Bitcoin will follow last year’s pattern and see gains in February and March,” Cowen noted.

However, he also cautioned that a significantly higher unemployment rate might create uncertainty for Bitcoin, potentially stalling its upward momentum. Former BitMEX CEO Arthur Hayes recently predicted that the Bitcoin price could crash to $70,000 before a mega rally starts.