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A $10 Billion Day for Bitcoin and Ethereum: Watch Out for Short-Term Volatility! - Coin Bulletin
Today, $10 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are expiring.
According to data from one of the largest exchanges, Deribit, a total of 8.3 billion dollars worth of 80 thousand Bitcoin contracts will expire today. The put-call ratio of these options is 0.68, while the max pain level is at 98 thousand dollars.
Max pain is the strike price with the highest open option contracts. This price is the one that would cause the most financial loss for the largest number of option holders when the options expire. The put-call ratio indicates the ratio between the buying options and selling options in the market.
In addition to Bitcoin, the maturity of more than 603,000 Ethereum contracts worth more than $1.9 billion is also due. The put-call ratio of these contracts is 0.43, and the maximum pain level is $3,300.
Market Stagnation and the Trump Effect
While the market has been generally sluggish this week, monthly deliveries account for approximately 30% of total positions. The quarterly options, which will expire at the end of March, represent 50% of the positions.
The start of Trump's term did not bring the expected large influx of capital to the cryptocurrency community. Instead, the publication of Memes and slow policy announcements caused a weakening of the cryptocurrency market.
However, in the long term, especially with factors such as policy changes by the new management and ETF inflows, the market is expected to be positively affected.