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Crypto Markets Brace for Bitcoin (BTC) and Ethereum (ETH) Options Expiry

Fri, 04/21/2023 - 06:15
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Alex Dovbnya
With substantial options expiries on the horizon for both Bitcoin and Ethereum, market participants will likely be watching these events closely
Crypto Markets Brace for Bitcoin (BTC) and Ethereum (ETH) Options Expiry
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The cryptocurrency market is preparing for a significant event as a considerable number of Bitcoin (BTC) and Ethereum (ETH) options are set to expire.

According to data shared by on Twitter, 25,000 BTC options will expire with a put-call ratio of 0.7, a max pain point of $29,000, and a notional value of $0.72 billion.

Additionally, 217,000 ETH options will expire, featuring a put-call ratio of 0.83, a max pain point of $1,950, and a notional value of $0.42 billion.

Crypto options, similar to traditional options, make it possible for investors to hedge their positions, speculate on price movements, or even generate income by selling options.

Option expiries refer to the end of an option contract's life, at which point the option either gets exercised or becomes worthless.

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In the context of the cryptocurrency market, an option is a financial instrument that provides traders the opportunity to buy or sell an underlying asset, such as Bitcoin or Ethereum, at a predetermined price before a specific expiration date.

The put-call ratio, meanwhile, is an indicator that measures the balance of put options (contracts that grant the right to sell) to call options (contracts that grant the right to buy) in the market. A high put-call ratio usually signals bearish sentiment, while a lower ratio implies bullish sentiment.

The max pain point, also known as the max pain level, is the point where option owners (buyers) feel the most financial pain, i.e., the price at which the greatest number of options will expire worthless. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at