Despite the absence of major factors affecting bullish momentum, traders have shifted to a “wait-and-watch” approach due to the looming options expiry. This has resulted in Bitcoin and Ethereum experiencing slight selling pressure as traders brace for the expiry event on Deribit, the largest derivatives exchange.
Market Overview
According to Coinglass, the crypto market witnessed $150 million in liquidations over the last 24 hours. The largest single liquidation occurred on OKX, where an entity sold $4 million worth of ETH to USD. The most liquidated cryptocurrencies in the past day included BTC, ETH, XRP, SOL, WLD, PEPE, DOGE, WIF, and ORDI.
Bitcoin and Ethereum Options Expiry
The global crypto market cap has retreated from $2.41 trillion to $2.35 trillion. However, events like the spot Ethereum ETF launch and the Bitcoin Conference have maintained investor optimism for market recovery. The Fear and Greed Index saw a sharp change from 25 (extreme fear) to 60 (greed) within a week, reflecting high volatility. The impending options expiry has led to a cautious market sentiment.
Today, over 20,670 BTC options with a notional value of $1.33 billion are set to expire on Deribit. The put-call ratio stands at 1.19, with a max pain point at $62,000, explaining BTC’s drop from $65K to $63K. Bitcoin’s implied volatility has surged significantly this week, indicating a forecast of potential price movement.
For Ethereum, 143,391 options with a notional value of $0.49 billion are due to expire, with a put-call ratio of 0.37. The max pain price for Ethereum is $3,150, below its current price of $3,444, suggesting potential for further selling. However, the anticipated spot Ethereum ETF launch next week is mitigating the selloff pressure.
Altcoin Options Expiry: SOL, XRP, and MATIC
Linear options tied to Solana (SOL), XRP, and Polygon (MATIC) are also set to expire on Deribit, with settlements in USDC.
Solana (SOL): 5,156 options worth $8.5 million are expiring today. The put-call ratio is 0.82, with a max pain point at $145. SOL is currently trading at $165, up 3% in the last 24 hours and over 20% in a week, driven by bullish sentiment due to Solana ETF speculations.
XRP: 3,473 options with a notional value of $1.93 million are set to expire. The put-call ratio is 0.70, with a max pain price of $0.47. XRP has dropped to $0.55 from $0.64 after a 40% rally in a week, as the community awaits a decision in the Ripple vs SEC lawsuit.
MATIC: Options worth $751,800 are expiring with a put-call ratio of 0.76. The max pain price is $0.51, slightly below the current price of $0.516. Polygon has scheduled the MATIC to POL token migration date for September 4.
As traders navigate the implications of the options expiry, the crypto market remains volatile, with significant events and speculative movements influencing sentiment and price action.
Related topics:
Arthur Hayes Launches Maelstrom Bitcoin Developer Grant Initiative
BinaryX Price Surges 38% Following Proposal to Burn 74% of Tokens
