Up to $15.2 billion worth of Bitcoin and Ethereum options are set to expire on March 29, and this could have a significant impact on the price of these assets. The market is currently facing liquidity uncertainty, with Bitcoin’s influence causing volatility and instability. Within the next 24 hours, about $9.5 billion worth of Bitcoin Options Contracts and $5.7 billion for Ethereum are expected to be settled, which could further contribute to the unpredictable volatility.
This options expiry is considered one of the largest in the history of Deribit, a leading crypto options platform. Call Options give traders the right to buy an underlying asset at a preset price in the future, while Put Options give the right to sell an asset at a preset price. According to data from Deribit, a significant portion of these options contracts are on track to expire in profit, which could lead to an upward price pressure.
However, market experts warn that the relationship between options expiry and price movement may not be linear. Intense volatility is expected around the $70,000 price mark, as many options dealers may hedge their bets at this point.
In addition to options expiry, other factors are also expected to impact the price outlook for Bitcoin and Ethereum. The spot Bitcoin ETF accumulation trend has been favorable for Bitcoin, pushing its price to new all-time highs. Ethereum has also benefited from this trend, especially with the recent launch of its Dencun Upgrade. Overall, sustained fundamentals and events like the upcoming Bitcoin halving are expected to shift investor sentiment and complement the effects of options expiry.
Bitcoin’s price is currently experiencing corrections, but it is still up 2.81% in the past 24 hours, trading around $70,738.23. Ethereum, on the other hand, has seen a jump in price to $3,580.65, up 1.55% in the past 24 hours. With these bullish trends, Ethereum may retest its all-time high of $4,891.70 in the coming weeks.