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BTC and ETH Options Expiry Sparks Volatility, Revealing $3.7B Notional Value

Key Points:

49,000 BTC options ($3.7B) and 295,000 ETH options ($860M) expire, with key Maxpain points at $69K and $2.5K.
Bitcoin hits a new all-time high above $75K, and Ethereum jumps to $2,900, driven by Trump’s victory.
Short-term options IV drops, signalling reduced market uncertainty and a strong bullish outlook for Q4.

According to the Greeks.live, there was a significant expiry event this week, as 344,000 BTC and ETH options (49,000 BTC – 295,000 ETH) would expire at a notional value of $3.7 billion, with a put-to-call ratio of 0.72.

BTC and ETH Options Expiry Triggers Market Shifts

The max pain point for Bitcoin stood at $69,000. Notably, 295,000 ETH options are set to expire, holding a notional value of $860 million, a Put/Call ratio of 0.65, and a max pain point of $2,500. These expirations have created massive market volatility, which has implications for Bitcoin and Ethereum.

The BTC and ETH options expiry comes as the cryptocurrency market has witnessed a sharp rally following Donald Trump’s victory. Bitcoin blew through $75,000, setting a new all-time high, and Ethereum witnessed a significant jump to rebound to $2,900, just near its Maxpain point for this week. This might be due to heavy positioning in the earlier parts of the rally, which has barely been shaken off with a big chunk of the options expiry achieved.

Declining Volatility Signals Optimism for Q4 Bullish Trend

BTC and ETH options expiry often mark periods of market recalibration because the positions are settled, and options contracts start to lose influence. This event accounted for roughly 15% of the total open positions.

The U.S. election result further decreased the IV of short-term options, indicating market uncertainty is decreasing. Additionally, the IV of mainstream term options showed an across-the-board decline in parity. Meanwhile, with the market adjusting, the sentiment was getting optimistic, and many analysts predict the bullish trend will continue into the fourth quarter, which means that both Bitcoin and Ethereum will have strong momentum going into the future.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.