The weekly crypto options expiry set traders to suddenly take a “wait-and-watch” approach despite big events such as spot Ethereum ETF listing next week. Traders were seen liquidating their positions a day before the expiry, experts say it’s likely due to high volatility.
Bitcoin and Ethereum prices are trading slightly under selling pressure as traders brace for $2 billion in crypto options expiry on the largest derivatives exchange Deribit.
The global crypto market cap saw a gradual pullback from $2.41 trillion to $2.34 trillion. However, spot Ethereum ETF launch, Bitcoin Conference, and other events kept investors bullish on further market recovery. The Fear and Greed Index saw a sudden shift from 25 (extreme fear) to 60 (greed) in just a week, indicating high volatility in the market currently.
Market participants took a step back due to crypto options expiry. Over 20,670 BTC options with a notional value of $1.33 billion expire today on Deribit. The put-call ratio is extremely high at 1.19 and max pain point is at $62,000. It explains why BTC price dropped from $65K to $63K.
However, Bitcoin implied volatility has increased significantly this week and continues to rise amid investors’ optimism. The implied volatility is typically a market’s forecast of a likely movement in price.
143,391 ETH options with a notional value of $0.49 billion expired, with a put-call ratio of 0.37. The max pain price for Ethereum is at $3,150, below the current ETH price of $3,444. This indicates more room for traders to sell but the anticipated spot Ethereum ETF launch next week is averting a selloff.
Also Read: Binance Traders Open New Bitcoin Short Positions, What’s Ahead?
Meanwhile, linear options tied to Solana (SOL), XRP, and Polygon (MATIC) worth millions also expire on Deribit. These linear crypto options expiry is settled in USDC.
5,156 Solana options worth $8.5 million will expire today. The put-call ratio is 0.82 and the max pain point is $145. SOL price is currently trading at $165, up 3% in the last 24 hours and over 20% in a week. Solana ETF speculations have turned investments bullish on it.
3,473 XRP options with a notional value of $1.93 million are set to expire today. The put/call ratio is at 0.70 and max paint price is $0.47. The XRP price fell back to $0.55 from $0.64 after a 40% rally in a week. The community awaits decision in Ripple vs SEC lawsuit.
MATIC options of a notional value of $751,80 will expire, with a put-call ratio of 0.76. The max pain price is at $0.51, which is below the current price at $0.516. Polygon has set MATIC to POL token migration date on September 4.
Also Read: Grayscale Ethereum ETF Mini-Trust Announces Full Fee Waiver Up to This Limit
According to Coinglass data, the crypto market saw $160 million liquidated in the last 24 hours. The largest single liquidation order happened on cryptocurrency exchange OKX as an entity sold ETH to USD valued at $4 million. BTC, ETH, XRP, SOL, WLD, PEPE, DOGE, WIF, ORDI were the most liquidated cryptocurrencies over the past 24 hours.
Notably, $123 million in long positions and $37 million in short positions were liquidated in the last 24 hours. Although the news of Ethereum ETF launch could be delayed, the listing of ETF and the growth of the entire crypto market are imminent and the inflow of funds will drive crypto higher.
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