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The cryptocurrency derivatives market might see some volatility caused by the April 4 options expiry event with Bitcoin and Ethereum at the forefront. Approximately 26,000 Bitcoin options with a notional value of $2.02 billion expired, according to data. At 1.24, the put/call ratio showed that more traders were protecting themselves from downside risk.
The value of $84,000 was determined to be the max pain price, which is the point at which options buyers suffer the greatest financial loss. This max pain point is noteworthy because it corresponds closely to the current range of prices for Bitcoin, indicating that the market has converged on a crucial area of equilibrium.
As options expiry draws near, prices have historically tended to move toward this level, which can cause a great deal of volatility before and after the event. The amount of $84,000 is highlighted as a possible short-term magnet in this instance, but the comparatively balanced distribution of calls and puts also suggests uncertainty and a lack of significant directional bias. Ethereum also had a significant expiration event.
Yuri MolchanIn contrast to BTC, over 220,000 ETH options expired with a Put/Call Ratio of 1.42, indicating stronger bearish sentiment. ETH's max pain level was set at $1,850, representing its roughly $400 million notional value. The technical chart of Ethereum indicates that it has been circling just above this area, which could indicate that the options market correctly anticipated a range of consolidation.
From the standpoint of trading, these expirations wipe out speculative positions, which lowers open interest and may result in more distinct market trends. Traders should keep a close eye on volume and volatility changes after the expiration, particularly if Bitcoin tries to break above its short-term resistance level around $85,000.
Around their respective max pain points, Bitcoin and Ethereum seem to be stabilizing, which could indicate short-term consolidation while simultaneously setting the stage for the next directional move in the upcoming weeks.
Vladislav Sopov
Dan Burgin