TL;DR
- More than $3 billion in Bitcoin and Ethereum options have expired, causing very high volatility in the crypto market.
- BTC faces a “max pain” level at $89,000 and ETH at $2,300, directly affecting investor returns and decisions.
- Despite the volatility, the market remains pessimistic, with a preference for sell options and a defensive approach among traders.
Today, a large expiration of Bitcoin and Ethereum options took place, with a value exceeding $3 billion, resulting in strong volatility in the crypto market.
According to Deribit, Bitcoin options total approximately $2.5 billion, while Ethereum options amount to $500 million. This event has caused significant price fluctuations for both assets, compounded by global economic uncertainty and the upcoming Crypto Summit at the White House, where relevant announcements regarding new policies for cryptocurrencies are expected.
Max Pain for Bitcoin and Ethereum
Bitcoin faces a critical level known as “max pain,” located at $89,000. This is the price at which most option holders would suffer losses. In the case of Ethereum, the “max pain” level is $2,300. These points reflect the price thresholds that most affect investors and are crucial to understanding recent price movements.
The majority of open positions in both markets are buy options, indicating that many traders expect prices to rise. However, the volatility in recent days, showing intraday moves of up to $6,000 in Bitcoin, has created many doubts, as no clear trend has been established. Despite the volatility, some analysts point out that BTC might be reaching resistance between $87,000 and $89,000, with potential support near $82,000, although the stability of these levels remains uncertain.
A Pessimistic and Defensive Market
Market sentiment remains largely pessimistic, with a preference for sell options. This reflects traders’ fear of further market declines, leading them to take defensive positions. Many are opting to sell buy options at prices near $89,000, seeking to protect themselves against potential drops.
Despite this situation, the market is expected to stabilize once the impact of the options expiration passes. However, it will be essential to remain vigilant of the movements and use technical indicators to manage the ongoing volatility. Additionally, the impact of external factors, such as trade policies and decisions from the Trump administration, could influence the next market movements
