- Nearly $3 billion in BTC and ETH options are set to expire today, raising volatility concerns.
- Bitcoin hovers just under $100,000, while Ethereum dances around $4,000.
- Seasonal slowdowns and U.S. inflation data add uncertainty to the market’s next move.
It’s a big day for the crypto market. Bitcoin and Ethereum options worth a whopping $2.72 billion are set to expire today, December 13, 2024. This event could spark major price swings, and traders are on high alert. Add in recent economic data and the holiday season, and it’s anyone’s guess where prices will go next.
Bitcoin Options: The $2 Billion Question
According to data from Deribit, 20,815 Bitcoin options contracts are expiring today. These contracts have a total value of about $2.077 billion.
The market’s put-to-call ratio stands at 0.83, which means more traders are betting on Bitcoin’s price going up (calls) rather than down (puts). The “maximum pain point” — the price where most traders would lose money — is set at $98,000. That’s just below Bitcoin’s current spot price of $99,758.
What does this mean? If Bitcoin closes around $98,000, it could cause the most financial discomfort for the largest number of option holders. It’s a classic tug-of-war between bulls and bears.
Ethereum Options: A $644 Million Balancing Act
Ethereum isn’t far behind. About 164,330 Ethereum options contracts are expiring, worth around $644 million. The put-to-call ratio for ETH is 0.68, showing a similar trend to Bitcoin: more traders are leaning bullish.
Right now, Ethereum is trading just below $4,000. Traders are watching closely to see if ETH can break through or if it’ll take a dip instead.
Market Sentiment: Cautious Optimism
This week, the market has seen its share of ups and downs. The Trump rally that boosted crypto recently has cooled off a bit. According to analysts at Greeks.live, this week has been about market corrections — especially for Bitcoin and altcoins.
With Christmas around the corner, trading activity often slows down. But this year, things feel different. U.S. stock market trends are influencing crypto more than usual, adding another layer of unpredictability.
https://twitter.com/GreeksLive/status/1867367492013916252
Greeks.live noted:
“In past years, the holiday season in Europe and the U.S. has meant lower trading volume. But this year, the influence of U.S. stocks on crypto could keep things interesting.”
What About Inflation and Interest Rates?
Adding to the uncertainty is the latest U.S. inflation data. Inflation in November rose to 2.7%, while core inflation stayed sticky at 0.3%. Traders are hoping for a Federal Reserve rate cut soon, but stubborn inflation complicates things.
A rate cut could fuel another crypto rally, but if inflation remains high, the Fed might hold off — dampening hopes for a big surge.
What’s Next for Bitcoin and Ethereum?
With Bitcoin hovering below $100,000 and Ethereum just under $4,000, all eyes are on how these options expirations will play out. Will the market take a bullish leap or dip into correction territory?
Market makers are being extra cautious right now, and short-term volatility could be intense. Analysts say this is a prime time for options trading, especially for those looking to capitalize on quick moves.