Crypto Options Expiry: Bulls and Bears Clash as Bitcoin and Ethereum Rally

This Friday, a significant number of $BTC and $ETH options are set to expire, marking a critical moment in the ongoing battle between bulls and bears. In a surprising turn of events, both #BTC☀ and #ETH🔥🔥🔥🔥 entered a strong rally on Thursday, gaining 7% and 10% respectively.

Bitcoin Options Expiry

- 32,000 BTC options contracts are expiring today, with a put-call ratio of 0.71.

- Notional value: $1.943 billion.

- Max pain point: $60,000.

After a volatile week, triggered by the Yen rate hike, Bitcoin's price dropped below $50,000 on Monday. However, the Bank of Japan's softer stance led to a strong recovery, with BTC surging 20% to above $61,000. Implied volatility remains high but has decreased significantly.

Ethereum Options Expiry

- 206,000 ETH options are expiring today, with a put-call ratio of 0.96.

- Notional value: $560 million.

- Max pain point: $2,950.

The put-call ratio indicates a tight contest between bulls and bears. Ethereum's price has rebounded strongly, jumping 10.70% to $2,700, with potential for further rally to $2,820. Ethereum ETFs showed resilience during the market collapse but have seen outflows as the market recovered.

Market Insights

- Grayscale Research suggests that if the US economy avoids recession, token valuations could rebound, with Bitcoin testing its all-time high by year-end.

- The report also notes that there is little tolerance for a deep economic recession, and the Fed may pivot to rate cuts at the first sign of trouble.

The expiry of these options contracts marks a critical moment in the crypto market, with both bulls and bears vying for control.