Bitcoin 12.1 Billion Warning About Expiration

Options on Bitcoin and Ethereum worth more than USD 14 billion expire today in the cryptocurrency market. With traders keeping a careful eye on price activity, this event might have a months-long impact on the market's cycle.Greeks.live data indicates that over 139,000 Bitcoin options contracts with a notional value of USD 12.1 billion are included in today's expiration. With 301,000 options contracts valued at around USD 2.13 billion, Ethereum is also experiencing an expiration.

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The put-call ratio is a crucial indicator that traders take into account when options expire. This ratio, which is 0.49 for Bitcoin, indicates that there are more call options (bullish bets) than put options (bearish bets). At 0.39, Ethereum's ratio is even lower, suggesting that the market is still inclined toward call options. But regardless of attitude, volatility is anticipated due to the sheer number of expiring options.

Bitcoin's present trading positions appear to be at the maximum pain point, suggesting that price fluctuations may be caused by options-related positioning. However, other forces are also affecting the larger market. Along with other macroeconomic variables influencing risk appetite, the ongoing uncertainty around additional tariffs imposed by U.S. President Donald Trump has led to the decline of Bitcoin. This gives the markets yet another problem.

As traders modify their holdings, large options expirations can result in short-term market volatility. The more significant query, though, is whether today's expiration will lead to a more significant change in the market. Three things may happen to Bitcoin once it expires:

Greeks.live has warned that a post-expiry rebound is questionable since selling pressure is growing throughout the bitcoin market. Unless a fresh trigger arises to boost bullish momentum, investors may be facing a difficult situation as we go into the second quarter of 2025.