Crypto Market Selloffs Alert: $2.1B in Bitcoin and Ethereum Options to Expire Today
Highlights
- Crypto market braces for $1.74 billion Bitcoin options expiry today.
- Ethereum options $400 million are set to expire on Deribit.
- Oil prices amid uncertainty on US-Iran war sparks jitters.
Crypto market selloffs could increase today as Bitcoin and Ethereum options are set to expire. Traders expect major volatility because of the options expiry and growing uncertainty, especially as Trump considers a “final blow” to Iran after turning down Iran’s offer to end the war.
The wider crypto market saw profit-taking after US PCE inflation reached a three-year high of 3.5%. Oil prices also rose to $106 as the US kept its naval blockade of the Strait of Hormuz to increase pressure.
Over $1.7 Billion Bitcoin Options Expiry Stirs Crypto Market Selloffs Jitters
According to Deribit derivatives crypto exchange, almost 23K Bitcoin options with a notional value of $1.74 billion are set to expire on May 1. The put-call ratio is 1.10, signaling a higher volume of put options as compared to call options, indicating traders are leaning bearish.
Bitcoin max pain price is at $76,000, below the current market price of $77,200. Moreover, puts are higher than calls at the $76,000 strike price, and the $75,500 and $77,000 strike prices have massive volume amid current crypto market volatility.
Deribit warned traders to watch the settlement closely as options traders are betting on consolidation near $76,000 after expiry. At press time, the data shows a 95% probability of Bitcoin options to expire above $76,000.
Bitcoin options trading activity in the last 24 hours saw the put-call ratio climb to 0.73. This comes amid a drop in trading volume in the past 24 hours as the Fed kept rates unchanged.
Glassnode data revealed that Bitcoin is trading below the Short-Term Holder Cost Basis at $78.9K. Also, BTC remains capped below the True Market Mean at $78K, with support at $65K-$70K.
Ethereum Options Expiry
More than 175,000 Ethereum options worth $400 million are set to expire on Deribit, with a put-call ratio of 0.95. In the last 24 hours, put volume rose much higher than call volume, pushing the ratio to 1.17. This shows traders are turning bearish and expect prices to fall amid crypto market selloffs.
Moreover, the max pain price is at $2,325, higher than the current market price of $2,284 at the time of writing. Higher puts than calls indicate a higher odds of a drop in Ethereum price, with traders adjusting for upcoming expiries.
ETH price is moving toward the max pain level, rising nearly 1.5% in the past 24 hours. The 24-hour low was $2,232 and the high was $2,293. Trading volume dropped by 45% over the last day after US PCE inflation data pointed to rising inflation linked to the US-Iran war.
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