$4B Crypto Options Expire Today, BTC, ETH, XRP, SOL Prices Slip
Over $4B in crypto options expire today, driving volatility. BTC, ETH, XRP, and SOL see price drops as traders brace for FOMC rate decisions
Quick overview
- Over $4 billion in crypto options, including Bitcoin, Ethereum, XRP, and Solana, are set to expire today, potentially increasing market volatility.
- Bitcoin has experienced $270 million in liquidations amid rising US Treasury yields and significant selling pressure.
- Ethereum's options expiry shows a bearish trend with a put-call ratio of 1.42, indicating increased selling interest.
- Traders are closely monitoring the expiry as macroeconomic factors could lead to heightened volatility in major cryptocurrencies.
Traders dealing with Bitcoin, Ethereum, XRP, and Solana are bracing for a major test: over $4 billion in crypto options set to expire today, a high-stakes event that will test the market’s mettle and send volatility into overdrive in the short term. Analysts say the total crypto market cap could drop below $3 trillion before next week’s Federal Reserve rate decision.
BTC, ETH, XRP, and SOL have already seen $270 million in liquidations as 10-year US Treasury yields have risen, Japanese government bond yields are climbing, and gold has gone through the roof. That’s put a lot of selling pressure on the market, especially on Bitcoin.
Deribit says there are 36,000 BTC options worth $3.5 billion set to expire today, with a put-call ratio of 0.92. Call volume has remained the dominant force over the last 24 hours, suggesting traders are taking a fairly neutral stance.
The max pain price is $91,000, which is actually below Bitcoin’s current price of $92,261, suggesting that even with a high chance of expiry above $91,000, we might still see short-term pullbacks. Implied volatility in BTC has dropped slightly as the market prepares for the “triple witching” later this month.
Ethereum Options Are Sending a Bearish Signal
Ethereum is facing a major hurdle: $667 million in options expiring, covering more than 210,000 contracts. The overall put-call ratio is 0.78, but over the last 24 hours, puts have taken over, with a ratio of 1.42, which is a bearish sign.
- The max pain price for ETH is $3,050 – actually slightly above the current market levels.
- The current ETH price is $3,165, with a low of $3,071 and a high of $3,223.
- Trading volume is down 20% over the last day.
Analysts think that after expiry, ETH is likely to hold above $3,100 because all those call positions at the max pain strike will reduce selling pressure.
XRP and Solana Are Feeling the Heat
There’s $5.94 million worth of XRP options set to expire today. The put-call ratio is 0.72, and the max pain level is $2.15. XRP dropped by 4% to $2.08, which is below the max pain price – which is weird given that we’ve seen ongoing inflows into spot ETFs. Throughout the day, XRP’s price ranged from $2.07 to $2.18.
Solana’s $12.54 million options expire with a put-call ratio of 0.76. The max pain price of $132 is actually below SOL’s current range of $138-$144. SOL’s trading volume is down 23% over the last 24 hours, and that’s a bad sign – especially with the FOMC meeting just around the corner.
Traders are keeping a very close eye on this expiry because, when you put all these potential macroeconomic pressures, liquidity flows, and leveraged positions together, you’ve got a recipe for seriously heightened volatility across major cryptocurrencies in the coming days.
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