Crypto Market Braces for $6B Bitcoin (BTC) & Ethereum (ETH) Options Expiry, What to Expect?

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21 Feb 2024

Crypto Market Braces for $6B Bitcoin (BTC) & Ethereum (ETH) Options Expiry, What to Expect?

STORY HIGHLIGHTS

Bitcoin and Ethereum will see $6 billion options expiry
BTC and ETH price faces headwinds before a rally
Traders are cautious as key weeks unfold

Bitcoin and Ethereum prices are rallying higher amid bullish sentiment with Crypto Fear & Greed Index at “extreme greed” with a value of 78. The market now braces for $6 billion in Bitcoin and Ethereum options monthly expiry on Friday, February 23.
Notably, options traders are making put options bets to safeguard against a potential drop in prices ahead of Bitcoin halving.

Bitcoin and Ethereum Options Expiry

Notably, 71K BTC options of notional value $3.7 billion are set to expire on February 23. The put-call ratio is 0.76 and max pain point is $47,000, indicating a profit booking scenario while remaining bullish. The crypto market can expect huge volatility. BTC price is currently trading below $52,000 level, still higher than the max pain price.
Source: Deribit
In the last 24 hours, the call volume higher than put volume. However, the put/call ratio is 0.79, which suggests bearish sentiment is building in the Bitcoin market.
Meanwhile, 792K ETH options of notional value $2.3 billion are set to expire, with a put call ratio of 0.46. The max pain point is $2,500. Traders are particularly bullish on Ethereum after a recent rally taking ETH price par $3,000. However, a pullback is anticipated ahead of Friday’s expiry, considering the choices traders have here.
Source: Deribit
The call volume doubled the put volume in the last 24 hours, with a put/call ratio of 0.40. ETH price fell below $3000 psychological resistance quickly.
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BTC and ETH Futures and Price Expectations

Bitcoin and Ethereum rallies are strengthening because of spot Bitcoin ETF inflows and pre-Bitcoin halving sentiment. However, headwinds such as FOMC Minutes, Fed officials’ speeches, PCE, and other unforeseen events will put some pressure on the crypto market in the coming days.
Ali Martinez shared that TD Sequential indicator shows a Bitcoin sell signal on the 3-day chart. “It’s important to note that the last two times this indicator signaled bearish, BTC experienced a 10% price correction!”
Crypto analyst Michael van de Poppe said he expects the primary scenario of bullish move to remain intact for BTC. However, he predicts a flush for liquidity on the downside before any upside continuation. In the case of Ethereum, he believes a strong continuation in the coming days, most probably until the Dancun upgrade.As per Coinglass data, total Bitcoin Futures open interest (OI) fell over 2.60% in last 24 hours, with OI down massively on CME and Binance. Meanwhile, total ETH Futures open interest (OI) jumped over 2% in the last 24 hours, but down 2% in the last 4 hours, indicating short-term bearish sentiment.
Also Read: US DOJ Requests New Order In Case Against Ex-Binance CEO Changpeng ‘CZ’ Zhao