$5B Crypto Bomb Drops Today: Bitcoin, Ethereum, XRP Options Expiry to Fuel Market Fireworks

Brace for impact—today's $5 billion options expiry could send shockwaves through crypto markets. Bitcoin, Ethereum, and XRP traders are strapping in for what analysts call 'gamma squeeze roulette.'

When the dust settles, someone's getting rich. Probably the usual suspects—market makers with algorithms sharper than a hedge fund manager's suit.

The crypto market prices recovered almost 3% to $3.88 trillion as U.S. President Donald Trump signed an executive order and enabled 401(k) retirement plans to invest in private assets such as Bitcoin and other crypto assets.

Following this development, crypto traders anticipated volatility as $5 billion in Bitcoin, Ethereum, and XRP options expire on Friday.

All eyes are on the largest-ever Bitcoin put option worth $600 million to expire on the derivatives crypto exchange Deribit.

Crypto Prices In Focus Amid $4 Billion Bitcoin Options Expiry

34K BTC options with a notional value of $4.08 billion expire on the largest derivatives crypto exchange Deribit on August 8.

The put-call ratio was 1.46, indicating traders were massively bearish and placed more put bets than calls.

Moreover, the max pain price was $116,000, lower than the market price of $116,970 at the time of writing.

This meant the chances of a pullback for BTC price were high. Crypto market traders have been adjusting their positions amid intense volatility.

However, the 24-hour put volume was lower than the 24-hour call volume. The put-call ratio was 0.86, indicating traders were buying more call options but remained cautious.

As per GreeksLive, the key focus remains on options strategies, particularly butterfly spreads. Traders are closely monitoring volatility levels and institutional FLOW indicators, such as the Coinbase Premium.

Meanwhile, veteran trader Peter Brandt pointed out that gold went into a long-term bearish trend against Bitcoin. This is poised to increase investors’ confidence to invest in Bitcoin instead of gold.

BTC price was trading 1.70% higher at $116,970 at the time of writing. The 24-hour low and high were $114,792 and $117,689, respectively.

Furthermore, the trading volume has increased by 23% in the last 24 hours, indicating a rise in interest among traders.

Ethereum Price Set to Hit $4,000 After Expiry?

Crypto market prices also awaits the potential impact of the ethereum options expiry. 223K ETH options with a notional value of almost $0.87 billion are set to expire.

The put-call ratio was 1.14, suggesting a bearish sentiment among traders as puts dominated calls. Also, the max pain point was $3,675, indicating that a pullback may happen amid delivery.

However, ETH options traders were focusing on $4,000 as a key resistance level and the impact of interest rate cut expectations on market momentum.

In the last 24 hours, put volume was lower than the call volume, with a put-call ratio of 0.76. This suggested a rebound in the ETH price expected by traders.

Analyst Michael van de Poppe predicted ethereum price to hit $4K resistance in the coming days. He added that markets remained strong, with volume picking up and an upside trend signal.

ETH price jumped 5% in the past 24 hours, with the price trading at $3,895. The 24-hour low and high were $3,716 and $3,964, respectively.

XRP Price En Route to $4 as Ripple vs SEC Lawsuit Ends

In other crypto market news, 2,527 XRP options with a notional value of more than $8.45 million are set to expire on Friday. The put-call ratio was 0.51, suggesting bullish sentiment among traders.

The max pain point was $3.10, below the market price of $3.31 at the time of writing. However, traders expect the price to remain bullish as long-running Ripple vs SEC lawsuit ended after a joint filing by the parties to drop their appeals.

Analyst Ali Martinez predicted a price target of $3.34 after breaking out of a triangle. xrp price is expected to hit a new ATH as whales and institutions bet big, as The Coin Republic reported earlier.

XRP price pared its earlier 13% spike in the last 24 hours, with the price changing hands at $3.31. The intraday low and high were $3.01 and $3.38, respectively.

Moreover, trading volume skyrocketed massively by more than 191%. It signals further upside in XRP price due to support from investors.