Volatility Ahead? Massive $18 Billion Cryptocurrency Options Expiry Looms Over Crypto Market

A total of $14.17 billion worth of bitcoin options are set to expire today, December 27, 2024, while an additional $3.74 billion worth of Ethereum’s ether options contracts are to expire as well, injecting uncertainty into the cryptocurrency market.

With a combined notional value of nearly $18 billion, the expiry of these contracts, representing 150,000 BTC and 1.12 million ETH, could trigger increased volatility in the coming days. According to analysts from Greeks.live, the put-to-call ratio for bitcoin options contracts sits at 0.69, suggesting a bias towards put options, which give holders the right but not the obligation to sell BTC at a predetermined price.

The analysts noted that the “maximum pain point” for bitcoin, the price at which most options contracts would expire worthless, is at $85,000. Ether options, they wrote, have a put-to-call ratio of 0.41, with a “maximum pain point” at $3,000.

Bitcoin is at the time of writing trading around the $96,700 mark after rising more than 4% over the past week. The cryptocurrency has since Dec. 17 seen a massive 11% correction from an all-time high around $108,500 to its current level.

Meanwhile Ethereum’s ether is trading at $3,400 after moving up 4.1% over the past week, and is down more than 17% since Dec. 17. The cryptocurrency’s price fell, along with that of most other risk assets, after the Federal Reserve revealed a more hawkish stance for rate cuts next year.

Greeks.live’s analysts noted on the microblogging platform X that that entire cryptocurrency market is optimistic for next year as U.S: president-elect Donald Trump is set to take office in January after running with a pro-crypto stance which could make him the “most crypto-friendly president in history.”

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