Today, over USD 10 billion worth of Bitcoin and Ethereum options are set to expire, which may cause severe fluctuations in the crypto market as eyeballs are on next week’s US jobs report.
Bitcoin price ranges $104,500 with little change after the Federal Reserve’s decision on interest rate this week. Moving forward, without any clear catalysts for BTC, sentiment seems to be shifting towards the US labor market and the PCE inflation data schedule for today.
$8.34 Billion In Bitcoin Options to Expire Today
As per Deribit data, Bitcoin option worth $8.34 billion will expire today. This includes the 80,179 contracts that is sharply higher than last week’s contracts which were only 30,645. The current put/call ratio is at 0.68 and has a max pain price of $98,000.
A ratio below 1 indicates a bullish sentiment is occurring especially after the FOMC meeting, the Bitcoin reached the $106K mark. But the truly concerning fact for traders is that large number of bitcoin options are expiring today which mean high market volatility can be experienced.
$1.94 Billion in Ethereum Options To Expire Today
Ethereum’s options contracts valued at $1.94 billion along with 603,426 contracts are set to expire today. This is a stark contrast to the 173,830 contracts which were due to expire last week.
The maximum pain price for Ethereum options stands at $3,300 and the put-to-call ratio is at 0.43 which suggests that the market is bullish. Ethereum fell to around $3,000 and quickly rebounded to $3,200 as the week progressed.
Most recently, ETH has gone up by 1.67% and is now resting at $3,244. Alongside this growth, news from above $20 billion trading volume suggests a 20% decrease which is concerning. Finally, on-chain data featuring the Ethereum MVRV ratio hints at a 40% possibility of price decline in the future.
Investors Await the US Jobs Data
The expiration of Bitcoin and Ethereum options has brought a lot of speculation, and alongside this, renowned crypto analyst Benjamin Cowen is offering his takes on the future of Bitcoin.
Cowen raised red flags when claiming that the week ahead could be extremely important for the struggling cryptocurrency due to the vital data on the labor market as well as the unemployment rate.
He warned that such unemployment shocks could contribute to higher levels of uncertainty in the market for Bitcoin and also interrupt its growth. In addition to this, former BitMEX CEO Arthur Hayes has also predicted that Bitcoin might dip down to $70,000 before making any major bullish movements.
