-
Crypto market traders are bracing for the $15 billion monthly options expiration.
-
Bitcoin options with a notional value of $13.42 billion will expire amid dwindling liquidity and increasing realized losses.
-
Bulls expect to hold $3,000 as $1.73 billion worth of ETH options expire today.
-
XRP is wavering amid high volatility, but experts predict a rally in the coming months.
Crypto market participants are preparing for the monthly options expiration after a recent rebound in Bitcoin, Ethereum and XRP. Traders are expecting massive volatility as the crypto market still remains subject to a sense of “extreme fear.”
The price of BTC rebounded more than 10% in a week amid massive buying and seasonal increases between Thanksgiving and Christmas. But experts such as Deribit and Glassnode expect consolidation in December as liquidity dwindles.
According to Deribit, more than 147,000 BTC options with a notional value of $13.42 billion are set to expire on Friday. The put-call ratio is 0.56, indicating positive sentiment among traders in favor of an uptrend.
Meanwhile, Bitcoin’s maximum price is $100,000. Additionally, puts exceed calls at $100,000 and $90,000, signaling a bearish bias among options traders. Over the past 24 hours, sales volume has increased significantly to exceed call volume. The put/call ratio of 1.12 signals a decline and hedging to offset losses.
“Positioning appears to have stabilized following the recent volatility, with open interest now congregating around the $100,000 level, despite the fear,” Deribit said.
Glassnode claims Bitcoin is stuck in range as liquidity decreases and realized losses increase. The crypto market is bracing for a selloff as futures deleverage, options remain defensive and demand remains weak. BTC price must surpass the buyers’ supply cluster of $93,000 to $96,000 for bullish momentum.
BTC price is currently trading above $91,000 due to higher probabilities of a 25 basis point Fed rate cut in December. But trading volume fell 30% in the past 24 hours, indicating traders remain cautious.
Over 574,000 ETH options with a notional value of $1.73 billion are scheduled to expire on Deribit, with a put-call ratio of 0.48. The low ratio indicates more buying bets amid positive sentiment due to the crypto market rebound.
Additionally, the maximum pain price is $3,400, higher than the current market price of $3,014 at the time of writing. Calls are higher than puts at peak price, with traders expecting a rebound in the coming days.
Over the past 24 hours, call volume per expiration is higher than put volume. However, 24-hour puts outperform calls, with a put/call ratio of 1.78.
