Bitcoin and Ethereum Options Worth $16 Billion Set to Expire, Could Trigger Market Turbulence

Key Points

• Bitcoin and altcoins face selling pressure post-FOMC meeting, with a monthly options expiry due on Oct. 31.
• Bitcoin’s price drops below $110K ahead of a $13.5 billion options expiry, while Ethereum options worth $2.5 billion are set to expire.

After the Federal Open Market Committee (FOMC) meeting, Bitcoin and other cryptocurrencies have experienced selling pressure. The crypto market is also preparing for a monthly options expiry on October 31. Bitcoin options worth nearly $13.5 billion, along with Ethereum options valued at $2.5 billion, are set to expire today, indicating potential volatility in the market.

Bitcoin Price Drops Below $110K Ahead of Options Expiry

Bitcoin’s weekly price action demonstrates significant movement from the highs of $116,000 to the lows of $106,000. Furthermore, the inflow into spot Bitcoin ETFs has turned negative, indicating a decrease in institutional sentiment.

In the past 24 hours, the BTC price has reached the downside liquidity at $106,000 and surged from there, moving closer to $110,000. Data from the crypto derivatives platform Deribit reveals that a total of 124,171 Bitcoin options contracts, worth $13.59 billion, are due to expire in the upcoming cycle.

Deribit’s data shows a put-to-call ratio of 0.70, suggesting a mildly bullish market sentiment. Of the total open interest, 73,001 are call options and 51,171 are put options, reflecting stronger trader positioning on the upside.

The max pain point is set at $114,000. Historically, the BTC price moves to the max pain point as the expiry approaches. However, it first needs to break some important resistances in the mid-way.

Crypto analyst Ali Martinez has identified $112,340 as the key resistance level currently facing BTC. Martinez noted that breaching this level could determine the next major directional move for Bitcoin.

Ethereum Options Worth $2.5 Billion Set to Expire

Ethereum’s price has slipped under the $4,000 level due to continuous selling pressure. As of the latest update, the ETH price is trading at $3,837 levels with 646,902 contracts worth $2.49 billion set to expire.

The max pain level for Ethereum is set at $4,100, slightly above the current spot price. Similar to Bitcoin, Ethereum’s put-to-call ratio stands at 0.70, signaling a mildly bullish market sentiment. However, data from Deribit indicates a more defensive tone among traders.

Call open interest totals 381,462 contracts, exceeding the 265,440 put contracts. This suggests that while traders maintain upside exposure, others are simultaneously hedging against potential downside risks.