Bitcoin and Ethereum Options Worth $4.8 Billion Set to Expire on Deribit

Bitcoin (BTC) and Ethereum (ETH) options valued at $4.8 billion are set to expire on Deribit, a prominent cryptocurrency options exchange, at 08:00 UTC on Friday. This event is drawing significant attention from investors as Bitcoin’s price remains around $26,000, following a 2.06% decline earlier in the week.

The expiration is related to the “Maximum Pain Point,” which represents a price level that would lead to the greatest losses for option buyers and the biggest gains for option sellers. Currently, this point for BTC is at $26,500 and for ETH at $1,580, closely aligning with their respective values of $26,056 and $1,567 on Monday.

The Maximum Pain Point often affects market dynamics, as option sellers typically aim to direct the price toward this level to reduce their potential payouts. Prices above the Maximum Pain Point may provide support, while those below can create resistance. As the last Friday of each month approaches—which is when options typically expire—the likelihood increases that prices will converge on this critical level.

In historical trends, the final quarters of the year have seen considerable volume and value in options expirations. In both March and June, options worth $5.2 billion and $5.4 billion expired, respectively. The current quarter seems to be on pace with similar patterns observed in 2023, with $3 billion in BTC options and $1.8 billion in ETH options scheduled to expire this September.

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