After a seven-year hiatus, the US government shut down due to an unresolved budget crisis. The uncertainty and volatility brought on by the shutdown continued, and Bitcoin and altcoins experienced a major crash following US President Donald Trump's announcement of tariffs on China last Friday. While the market has recovered somewhat, cryptocurrency weakness persists. As investors continue to exercise caution, the expiration date for options contracts in the crypto market, as is the case every Friday, has arrived. According to data from the third week of October, approximately $5.7 billion worth of crypto options will expire on the Deribit derivatives exchange on October 17. According to Deribit data, $4.79 billion worth of Bitcoin (BTC) and $990 million worth of Ethereum (ETH) options are set to expire. Accordingly, the Put/Call Ratio of BTC options is 0.83, the maximum loss point is $116,000 and the notional value is $4.79 billion. When we look at Ethereum, ETH options have a Put/Call Ratio of 0.81, a maximum loss point of $4,100, and a notional value of $990 million. While Bitcoin and Ethereum options expirations are expected to increase volatility in the short term, crypto options analysis platform Greekslive has highlighted a key trend. Accordingly, analysts at Greekslive reported that bearish (put) trades in Bitcoin's block options market reached 28% of total volume in the last 24 hours. Analysts said that more than $1.15 billion flowed into put options, according to the data. Analysts noted that investors are preparing for further declines following the recent decline, with put positions concentrated mainly in short-term options in the $104,000-$108,000 range. According to Greekslive analysts, this trend indicates that investors are taking positions to hedge against possible short-term declines. What Does Max Pain Mean for Bitcoin and Ethereum? Max pain can often act as a magnet during expiration in options markets. In the options market, maximum pain is the price level at which investors incur the greatest losses and options sellers feel most comfortable. In other words, it acts as a magnet for the market as contracts expire. At this point, the maximum pain level for Bitcoin was $116,000, while the maximum pain level for Ethereum was $4,100. As a result, Bitcoin and Ethereum are currently below their maximum pain levels of $106,800 and $3,810, respectively. Analysts believe this suggests investors are anticipating limited upward movement in the short term. However, it doesn't guarantee a definitive rise or fall. *This is not investment advice. Continue Reading: Bitcoin and Ethereum Expect $6 Billion Options Quake Today! These Levels Could Act as Magnets for BTC and ETH!
