Tomorrow is a critical day at crypto options exchange Deribit! Billions of Dollars in Bitcoin Options Contracts Are Coming to an End! Here are the details

Tomorrow, there will be a significant expiry event in the crypto derivatives market. Approximately $3.9 billion worth of options contracts are set to expire on Deribit, the world's leading crypto options exchange.

$3.9 billion in crypto options on Deribit to reach expiry as investors turn bullish on Ethereum

This event is expected to lead to significant volatility in both the Bitcoin (BTC)** and Ethereum (ETH)** markets.

Of the total, $3.3 billion is the face value of Bitcoin options. The Put/Call ratio stands at 1.16, indicating a slight bearish bias as traders are holding more put options than call options.

However, the maximum pain point is set at $106,000, where the most options will become worthless, indicating a relatively neutral positioning.

Market data shows that BTC options are clustered around this level, with traders maintaining a balanced outlook ahead of expiration.

Meanwhile, Ethereum options total $546 million, with a Put/Call ratio of just 0.68, which is a clear sign of a bullish trend among traders.

The maximum pain price for ETH is $2,600, but options activity is weighted towards call positions, indicating strong expectations for the upward movement of prices.

The concept of maximum pain, where the most options expire worthless, is often shown as a short-term price magnet during expiry events. Therefore, the current levels of $106,000 for BTC and $2,600 for ETH could act as a center of gravity in the hours leading up to expiration.

While Bitcoin's market positioning may appear cautious, Ethereum's bullish momentum could lead to increased volatility and potential upside moves, especially if overall market sentiment remains positive.

Traders and analysts will be closely watching whether these expectations will materialize or whether surprise moves in the last hours before the contracts close will disrupt the charts.

*This is not investment advice.

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