$6B In Bitcoin Options & Ethereum Options Expire: What’s Next?

The options markets, especially on the Deribit exchange, control a significant portion of the volume in the cryptocurrency markets. Thus, the expiration of call and put options typically has a substantial impact on the prices of these assets.

Over $6 Billion worth of Bitcoin options and Ethereum options contracts were scheduled to expire on October 24. This massive expiry event could lead to increased market volatility as traders adjust their positions.

As a result, the prices of these crypto assets would become more volatile. With that in mind, we will examine how these expiration dates may affect the market.

Bitcoin Options Expire, but How Will BTC Price React?

According to a post by Deribit, the daily ratio of puts to calls for these Bitcoin options was 1.07. These options were about to expire. The daily ratio was a little higher than that of open interest (OI), which was 1.03. This indicates a higher concentration of puts.

The OI ratio of puts totaled 24,372, while that of calls was 23,832. In general, the total OI for BTC options was 48,203 with a notional value of $5.28 billion.

The OI by strike price showed the maximum pain price was $114,000. If these Bitcoin options expired at this price, call buyers would lose their invested capital.

This large number of puts indicated that traders were hedging against losses. But the overall structure of the market wasn’t ready for a big drop.

If the options expired around $108K, calls would lose their money. The market would be bearish with put-in profits. Spot traders would buy at this price level, perceiving it as a discount. This would lead to a short-term price increase.

Additionally, Bitcoin options hit an all-time high of $50 billion in OI. According to Deribit data, trading crypto options has been steadily rising since January 2023.

However, the majority of the growth, exceeding $20 billion, occurred this year. In fact, put options at $100,000 and calls at $120,000 became more popular.

Ethereum Options Expire as Price Eyes $8K

As demand rose, Ethereum options became more positive. The OI put/call ratio was 0.79. The ratio came from 106,457 calls and 84,007 puts. The result favored a bullish trajectory.

The maximum pain price was $3,950, aligning with the OI. The daily put/call ratio was 1.22, which meant that there was more volume in puts than calls. Thus, it indicated that short-term hedging was on the downside.

Although there was some caution, the total OI skew was substantial, with a notional value of $742 million. This brings the total expiry to over $6 billion. According to the data, Ethereum was trading around $3,950. That indicated strong demand and that the price was more likely to rise.

Ash Crypto observed that Ethereum is showing signs of reaccumulation in a Wyckoff pattern. The projected target price range is between $8,000 and $10,000. Options market data backs this forecast. Traders appear confident in Ethereum’s potential to rise further.

The trading range on the 3-day timeframe chart indicated that significant levels were at $3,800 and $4,000. The several stages and spikes in volume implied that institutions were buying.

Additionally, approximately $106 million in whale volume and $2.1 billion worth of stablecoins were transferred into the Ethereum mainnet.

All these factors could support a price appreciation of $ 3,850. Thus, if ETH breaks above $4,100, its price is expected to rise to between $8,000 and $10,000.