Record $18B Crypto Options Expiry Signals Volatile Year-End for Markets
2024-12-29
The crypto market is closing out 2024 with unprecedented activity, as a record $18 billion in options contracts is set to expire. Bullish sentiment dominates both Bitcoin (BTC) and Ethereum (ETH) options, reflecting traders’ optimism despite the looming potential for significant market volatility.
Bitcoin Leads with $14B in Options Contracts
Source: Deribit
According to Deribit, nearly 150,000 Bitcoin options contracts, valued at $14.17 billion, are set to expire. These contracts show a Put-Call Ratio of 0.69, indicating that bullish traders betting on higher BTC prices outnumber bearish traders.
The Max Pain level—where most buyers incur losses and sellers profit—is $85,000, signaling expectations of upward price momentum. However, the heavily leveraged market could face rapid corrections if prices deviate significantly from current levels.
Read more about Bitcoin (BTC):
Bitcoin Price (BTC), Market Cap, Price Today & Chart History
BTC to USD: Convert Bitcoin to US Dollar
Ethereum Options Reflect Bullish Sentiment
Ethereum options contracts are also seeing heightened activity, with 1.12 million contracts valued at over $3 billion expiring. A Put-Call Ratio of 0.41 highlights stronger bullish sentiment among ETH traders. The maximum pain price is $3,000, reflecting traders’ confidence in Ethereum’s upward trajectory.
Read more about Ethereum (ETH):
ETH to USD: Convert Ethereum to US Dollar
Ethereum (ETH), Market Cap, Price Today & Chart History
Market Risks and Volatility
While bullish sentiment defines this record expiry, Deribit warns of heightened uncertainty. The Deribit Volatility Index (DVOL) and other metrics suggest the potential for sharp market swings. With the market heavily leveraged to the upside, a significant downside move could trigger a cascade of liquidations, intensifying volatility.
Conclusion
As the year-end expiry unfolds, the record $18 billion in crypto options highlights both traders’ optimism and the fragility of heavily leveraged markets. Bitcoin and Ethereum’s dominant positions underscore their importance in shaping overall market sentiment, but the potential for sudden price swings makes this a pivotal moment for crypto investors.
Disclaimer: The content of this article does not constitute financial or investment advice.
