Crypto Market Braces for Volatility as $4.6 Billion in BTC and ETH Options Expire

The crypto market faces potential turbulence today as nearly $4.6 billion in Bitcoin and Ethereum options approach expiration.

The timing aligns with two major U.S. events that have stirred market sentiment this week: the recent election and the Federal Reserve’s latest policy meeting.

Recent data shows that approximately 48,794 Bitcoin options contracts, worth around $3.7 billion, are due to expire with a peak pain point of $69,000.

For Ethereum, 294,380 contracts worth $854.88 million will also expire, with a maximum pain price of $2,500. In options trading, the maximum pain price is where most options become worthless, causing the greatest financial loss for traders.

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As election-driven market excitement slows, Greeks.live analysts note a cooling in the options market, with lower demand for “doomsday” options, which allow early redemption. Implied volatility is down across all major terms, with Ethereum experiencing smaller declines than Bitcoin. Large investors are already positioning themselves for the next year.

This follows the Federal Reserve’s decision to lower interest rates by 0.25%, with Chair Jerome Powell indicating a pause on further hikes. Powell also hinted at staying in his role despite potential challenges to his position amid Trump’s interest in expanding U.S. crypto regulations beyond the SEC.

Kosta Gushterov