Crypto Traders Brace for $17B Monthly Options Expiry: BTC Holds Steady While ETH Plays Defense
Massive $17 billion crypto options expiry sends shockwaves through derivatives markets
Bitcoin traders maintain cautious optimism despite looming volatility
Ethereum investors deploy aggressive hedging strategies as expiration deadline approaches
The smart money isn't betting on direction—they're betting on volatility itself
Options markets reveal institutional divide: BTC believers hold firm while ETH traders prepare for turbulence
Because nothing says 'stable store of value' like a $17 billion monthly expiration event
BTC options point to cautiously bullish trading
Deribit analysis suggests traders are positioned as cautiously bullish, based on the ratio of call to put options. The options traders are no longer actively hedging for a significant downside. BTC is currently trading below the maximum pain expiration at $114,000.
The pressure to hedge for a downside eased as the US-China trade tension diminished.
The ETH monthly options are expiring with a 1.25 put-to-call ratio, signaling much greater caution. The max pain for the expiry is at $4.1K. ETH is now positioned as a more volatile asset, with put options outweighing calls.
Despite the interest of whales, ETH traders are more cautious, expecting a shift to a lower valuation. ETH sees significant demand from ETF buyers and DAT companies, but the price remains more volatile, causing the need for more hedging.
BTC sentiment shifts to fear
Ahead of the options expiry, BTC sentiment shifted to fear, dropping from 51 points to 24 points. BTC spent a few days with neutral sentiment, but the recovery was short-lived.
Based on the current liquidation heatmap, BTC may see some upside moves in the short term. Following the options expiry, BTC may seek a new price range. Currently, short liquidity has rebuilt all the way up to $117,000, potentially setting up a short squeeze.
The monthly options expiry event may add to the market pressures, as BTC continues with more volatile trading. Current BTC volatility is at a six-month peak at 1.93%.
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