$1.86 Billion in Bitcoin and Ethereum Options Expiring: CPI Data Fallout

Bitcoin and Ethereum Options Expiry: What to Expect? 

Data from Deribit reveals that $1.4 billion in Bitcoin options are due to expire. The maximum pain point for Bitcoin stands at $59,500, with 24,383 contracts involved. This is a decrease from last week’s 31,615 contracts. The current put-to-call ratio sits at 0.83, reflecting slightly bearish sentiment in the market. 

Ethereum options worth $471.79 million are also set to expire, covering 183,821 contracts, down from last week’s 206,626. The maximum pain point is $2,650, and the put-to-call ratio is 0.80, showing a cautious outlook. 

The “maximum pain point” refers to the price at which option holders face the most financial loss, while the put-to-call ratio offers insight into market sentiment, with higher ratios indicating a more bearish outlook. 

Analysts Share Insights on Market Movements 

Market analysts from Greeks.live have pointed out that the recent U.S. CPI data, lower than expected, has sparked speculation about a possible Federal Reserve rate cut in September. Many expect a 25-basis-point reduction. 

Ethereum has struggled since the approval of a new ETF, with prices dropping and only seeing a modest rebound. Implied volatility (IV) is also down, with a skew favoring put options. 

Bitcoin’s price dropped to $57,255, down from nearly $60,000 before the CPI data release. Ethereum has also seen a decline, falling from $2,751 to $2,534, and currently trading at $2,562. 

Market Volatility Ahead 

Historically, the expiration of options contracts can trigger sharp but temporary price changes. Traders expect volatility, but the market often stabilizes after the contracts expire.