The cryptocurrency options market faces a significant moment as substantial volumes of Bitcoin (BTC) and Ethereum (ETH) options expire soon. The impending expiry involves 21,000 BTC options and 350,000 ETH options, indicating a notable shift in market dynamics and trader sentiment.
The BTC options nearing expiry have a total notional value of approximately $1.4 billion, with a Put Call Ratio of 0.88, which suggests a slightly bullish sentiment among traders. The maximum pain point, the strike price at which the most options would expire worthlessly, is $67,000. This level is crucial as it may influence the market behavior before expiration.
Ethereum Options: Dominating the Scene
In contrast, ETH options show a stronger bullish sentiment with a lower Put Call Ratio of 0.58. The total notional value of these options is close to $1.3 billion. The maximum point for ETH options is $3,200. Interestingly, Ethereum has recently outperformed Bitcoin, mainly due to optimistic developments surrounding Ethereum-traded funds (ETFs). This led to a 20% increase in ETH prices in just one day, while the implied volatility (IV) for short-term options soared to 150%.
The divergence between Bitcoin and Ethereum is becoming increasingly apparent from block trading and market trading structures. Despite Ethereum’s bullish solid sentiment, maintaining high IV levels across all significant terms is challenging. Market analysts suggest that calendar spreads offer better opportunities under the current conditions. On the Bitcoin front, the sentiment is more balanced with noticeable pressures from call selling, indicating a mixed outlook among traders.
