Over $10 Billion Bitcoin and Ethereum Options Expiring Today – Is Volatility Coming?

In the latest crypto market news, more than $10 billion worth of Bitcoin and Ethereum options are set to expire today, signaling strong volatility ahead of US personal income and pending data. 

More than $10.3 Billion worth of Bitcoin and Ethereum options contracts are set to expire today – Friday, Jan. 31st which may lead to heightened market volatility.  

The significant event comes barely a day after Bitcoin rebounded from a two-day price dip triggered by the January FOMC meeting.

As investors rushed in to book profits before the rate decision, Bitcoin slipped below $100,000, eventually finding support around $97,600. At the time of writing, the digital currency remains range-bound between $104,000 and $106,000. 

Is Bitcoin Going To Rally Soon?

As many as 80,179 Bitcoin options contracts, worth more than $8.36 Billion, expire today. 

These contracts have a maximum pain price of $98,000, while the highest open interest price is $120,000. The put-to-call price stands at 0.68, which means more longs than shorts.

Note that a put-to-call ratio of less than 1 generally indicates a bullish sentiment towards the cryptocurrency. However, a bullish attitude doesn’t always imply the absence of increased and often adverse volatility.

Is It A Good Time To Buy Ethereum?

The Ethereum market will witness the expiry of more than 603,400 contracts worth $1.94 Billion.

These contracts have a maximum pain point level of $3300, and their put-to-call ratio is slightly lower than that of Bitcoin, which is 0.43. It nevertheless points to an equally bullish market sentiment and optimism towards ETH’s future price action.

Other Volatility-Triggering Events Ahead

In addition to the news about options expiration, two other events are expected to impact Bitcoin’s immediate price action. These are the Month-on-Month Personal Spending and Personal Income data. Commonly referred to as the Personal Consumption Expenditures (PCE) index, it has historically had a relatively low impact on the crypto market’s volatility.