Nearly $1.6 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire today, creating potential volatility in the crypto markets. This expiration event coincides with the Federal Reserve’s recent decision to cut interest rates by 50 basis points, which fueled a rally in Bitcoin and Ethereum prices.
Data from Deribit shows that 20,037 Bitcoin options contracts, valued at approximately $1.26 billion, are expiring. These contracts have a put-to-call ratio of 0.85 and a maximum pain point of $58,500, meaning this is the price level at which the most options would expire worthless. Similarly, Ethereum’s options market will see 125,046 contracts worth $308.16 million expiring, with a maximum pain point of $2,350.
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Fed’s Rate Cut and Its Effect on the Crypto Market
The Fed’s decision to lower rates helped push BTC and ETH prices higher, with Bitcoin rising from $59,000 to over $63,500, and Ethereum jumping from $2,293 to $2,482. However, both assets have since stabilized, with Bitcoin trading at $62,890 and Ethereum at $2,450 at the time of writing.
Caution Ahead for Traders
Despite the bullish momentum, traders are advised to remain cautious, as options expirations often bring short-term instability to the market. The next few days will be crucial in determining whether BTC and Ethereum can maintain their upward trajectory or if a market correction is imminent.
