The expiration of Bitcoin and Ethereum options is capturing the attention of the crypto market today. About 2.3 billion dollars in contracts are reaching their expiration, in a context where implied volatility remains high and spot prices are in sensitive technical areas.
This type of event usually generates sharp short-term movements. Not so much due to fundamental changes, but because of mechanical adjustments in hedging that traders and market makers carry out before and after the expiration.
What does the expiration of Bitcoin and Ethereum options imply and why does it matter?
The expiration of options occurs when contracts reach their final date and are settled, either worthless or based on the spot price. This process usually increases volatility due to hedging adjustments and the forced closure of positions.
On this day, Bitcoin concentrates the majority of notional value, with about 1.94 billion dollars in options expiring. The price is around 89,700 dollars, below the estimated maximum pain level of 92,000 dollars.
Open interest shows more call contracts than puts, with a Put/Call ratio close to 0.81, reflecting a moderately bullish bias, although far from extreme.
Ethereum, for its part, adds about 347.7 million dollars in options. Its price hovers around 2,950 dollars, quite below its maximum pain level close to 3,200 dollars.
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The Put/Call ratio is similar to that of Bitcoin, around 0.84, indicating cautious optimism, but with active hedges against possible declines.
Although the total amount is lower than last week, when nearly 3 billion dollars expired, the concentration of strikes keeps the market sensitive to rapid movements.
Volatility, hedging flows, and the post-expiration scenario
The concentration of open interest at key levels can turn those prices into true 'magnets'. As expiration approaches, dealers adjust their hedges to remain neutral, which can push the price towards the most populated strikes.
If the spot price approaches maximum pain levels, hedging flows tend to reinforce that movement. Conversely, a clear break above or below those zones can trigger accelerated repositioning, amplifying volatility instead of reducing it.
The expiration position is highly concentrated at key levels, keeping the spot sensitive until the cut. Geopolitical uncertainty and trade policy remain the macroeconomic backdrop, supporting demand for hedges and keeping volatility reactive. Pay attention to strike magnets, dealer hedging flows, and the new valuation of volatility after expiration,” wrote Deribit analysts.
This behavior occurs in a complex macro context. Geopolitical tensions, changes in trade policies, and doubts about global monetary conditions have increased the use of options as a hedging tool. As a result, implied volatility remains high even when the price seems stable.
After expiration, the market usually revalues volatility. The release of accumulated gamma exposure can lead to more defined directional movements, whether a relief rally or a correction if macroeconomic fears resurface.
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With clear technical levels and external risks still present, today's expiration could mark the beginning of a new price phase for Bitcoin and Ethereum.
In summary
The expiration of nearly 3 billion dollars in options tests the strength of the recent crypto rally.
Bitcoin leads the market, but defensive positioning indicates persistent caution.
After expiration, it is common for volatility to temporarily increase before the market finds a new equilibrium.
The upcoming sessions will be key to confirming whether the bullish momentum can be sustained.
Frequently Asked Questions
What is the expiration of Bitcoin and Ethereum options?
It is the date on which contracts are settled, which usually increases volatility due to hedging adjustments.
Why does the expiration of options affect Bitcoin and Ethereum?
Because they concentrate the majority of open interest, influencing flows and price movements.
Does volatility always increase after expiration?
Not always, but it is common to see stronger movements when market volatility is revalued.
