Bitcoin Options Worth $2 Billion Expire Worthless As BTC Dips to $68K

Today, as the crypto market flipped bearish again amidst the ongoing correction, the derivative market for Bitcoin and Ethereum is feeling the heat.

Recent market data shows that 28,000 Bitcoin options with a notional value of approximately $2 billion became worthless today, November 1, at a max pain of $69,000.

The expired Bitcoin options contracts have a notable put-call ratio of 0.92. This implies there were almost as many put options (bets on a price drop) as call options (bets on a price increase).

Bitcoin Dips to $68K

This development in the derivative market coincided with Bitcoin crashing to as low as $68,779 early today, reflecting a massive intraday drop of 5.34% from the daily peak value of $72,662. This correction follows Bitcoin’s four consecutive daily green candles this week, during which it traded at lofty levels last seen in March.

At press time, Bitcoin has yet to recover, continuing to trade below the $70K level, which dampens the bullish sentiment in the market.

$350 Million in Ethereum Options Expired

Bitcoin’s pullback has also impacted the market sentiment around Ethereum. Today, the ETH derivative market saw 137,000 options expire, with a put-call ratio of 0.69 and a max pain at $2,550. The expired Ethereum contracts have a notional value of $350 million. This figure is nearly six times lower than the amount of Bitcoin options that expired today.

Ethereum’s Poor Performance Relative to Bitcoin

Notably, Ethereum registered a more dramatic drop of 6.8% today, falling from $2,647 to $2,467. Interestingly, while Bitcoin traded near its all-time high this week, Ethereum lagged significantly, only reaching $2,720—over 44% below its all-time high.

In March, Ethereum traded in the $4,000 range when Bitcoin was at $73,000. Essentially, Ethereum’s performance against Bitcoin has worsened over the last seven months, failing to capitalize on Bitcoin’s uptrend as it historically has.

In fact, in October, the gap between Bitcoin and Ethereum reached historic levels, with Bitcoin leading ETH by over $1 trillion. That gap has continued to widen ever since.

Now that the crypto market sentiment is becoming bearish, market watchers are pinning hopes on the U.S. elections taking place next week for a potential bullish sentiment, contingent upon Americans electing a pro-crypto president.