A significant option expiration occurred in the cryptocurrency markets today, with approximately $1.97 billion worth of Bitcoin (BTC) and Ethereum (ETH) options reportedly expiring and entering settlement.
Markets are now focused on the major quarterly contract expiry date next week.
According to Greeks.live data, 23,000 BTC options reached expiration today. The total nominal value of these options was calculated at $1.6 billion, while the put/call ratio was 0.88. The maximum pain level was $70,000.
On the Ethereum side, 176,000 options have expired. The total value of ETH options was $370 million, while the put/call ratio was recorded at 1.04. The maximum pain point was determined to be $2,150.
Greeks.live analyst Adam noted that the recent upward trend in the market has ended, with Bitcoin briefly falling below $70,000. According to the analyst, the $75,000 level, which has been a strong resistance for the past week, could not be breached. It was stated that approximately 5% of end-of-month option positions were concentrated at this level, and that the failure of breakout attempts led the price back down to around $70,000.
Ahead of the quarterly options expiry next Friday, the $75,000 level stands out as the region with the highest concentration of open positions. In a downside scenario, the $65,000, $62,000, and $60,000 levels are prominent support areas.
In the options market, no significant change was observed in terms of volatility. Implicit volatility (IV) in Bitcoin options remained at 50%, while in Ethereum options it was measured at 70%. However, the decrease in realized volatility (RV) led to an increase in the volatility risk premium (VRP).
The data also reveals that overall market appetite remains weak. Only 5% of total open positions reached expiry, marking historically low levels, while Bitcoin trading volume remained quite limited despite price fluctuations. A general decline in skew volumes alongside price drops indicates that the market remains fragile and bullish expectations remain weak.
*This is not investment advice.
