$18B in Bitcoin and Ethereum options set to expire today

Today marks a significant milestone in the cryptocurrency market as $18 billion worth of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) options contracts are set to expire. 

This expiry represents the largest in history, creating anticipation among traders and investors alike.

According to data from Deribit, the Bitcoin options include 88,537 contracts, which is four times more than last week. 

For Ethereum, 796,021 options contracts are expiring today, 4.5 times higher than the previous week.

The total value of expiring Bitcoin options stands at $14.38 billion, while Ethereum's options total $3.7 billion. 

The high value of these expiring options indicates strong trader expectations for profit and a rising demand for risk hedging.

Bitcoin's put/call ratio is currently at 0.69, suggesting a bullish sentiment among traders as more call options are being purchased compared to put options. 

In contrast, Ethereum's put/call ratio has dropped to 0.41, reflecting growing optimism for ETH.

Both cryptocurrencies are trading above their maximum pain prices—$85,000 for Bitcoin and $3,000 for Ethereum—indicating potential volatility as traders adjust their positions.

David Lawant from FalconX noted that “demand for downside protection has been rising for a few weeks now,” highlighting the increased hedging sentiment as traders prepare for the expiry.

As Bitcoin and Ethereum approach the end of the year, their current trading prices of approximately $96,300 and $3,300 respectively could lead to sharp price movements influenced by these expirations.

Market analysts suggest that with leveraged positions heavily favoring upward trends, any significant downward movement could trigger rapid sell-offs.

At the time of reporting, the Ethereum price was $3,426.04 and the Bitcoin price was $96,933.27.