Key Insights:
- In the latest crypto news, $3.5 billion Bitcoin options are set to expire on Deribit on Friday.
- Ethereum options of notional value $0.85 billion are also set to expire.
- Over $100 million in XRP options triggers a fall in XRP price.
In crypto news today, Bitcoin, Ethereum, XRP traders brace for $4.3 billion options expiry. The large expiry could cause a short-term volatility in the crypto prices.
This will trigger the market cap to fall below $4 trillion again, after the recent post-FOMC rally.
Crypto News: $3.5 Billion Bitcoin Options Expiry
29K BTC options with a notional value of $3.5 billion to expire on the largest derivatives crypto exchange Deribit on September 19. The put-call ratio was 1.35.
This crypto news indicated traders were massively bearish, placing more put bets than calls after the latest crypto prices rebound.
Moreover, the max pain price was $114,000, lower than the market price of $116,554 at the time of writing.
This implied a high chance of a pullback in Bitcoin USD, with traders adjusting their positions amid intense volatility ahead of “triple witching” next Friday.
However, the 24-hour call volume was higher than the 24-hour put volume. The put-call ratio was 0.77, indicating traders were buying more call options.
As per Greekslive, key options metrics indicate declining implied volatility (IV). The short-to-medium-term IV for Bitcoin USD has fallen below 30%.
Put option block trades and their transaction share have risen steadily this month, reflecting risk hedging as the primary strategy.
Bitcoin price was trading 0.70% lower at $116,432 at the time of writing. The 24-hour low and high were $116,420 and $117,911, respectively.
Furthermore, the trading volume has decreased by 34% in the last 24 hours, indicating a lack of interest among traders.
Ethereum Options with $0.85 Billion in Notional Value to Expire
In Ethereum crypto news, 178K ETH options with a notional value of almost $0.85 billion are set to expire. The put-call ratio was 1, suggesting a slightly bearish sentiment among traders.
Also, the max pain point was $4,500, above the current market price. Moreover, the call bets are higher at the strike price, indicating bias towards a lower price to minimize losses.
In the last 24 hours, put volume was lower than the call volume, with a put-call ratio of 0.85. This suggested an expected rebound in Ethereum price by traders.
According to Greekslive, ETH’s primary IV terms are all below 60%, with short-to-medium-term IV dipping under 50%, signaling low volatility levels.
As The Coin Republic reported earlier, analysts, including Michael van de Poppe predicted Ethereum price could drop to $4,000 if it fails to climb to $4,700.
The bearish sentiment could erode in the coming week ahead of the monthly expiry.
ETH price fell more than 1% in the past 24 hours, with the price trading at $4,512. The 24-hour low and high were $4,510 and $4,636, respectively.
XRP Crypto Price May Drop Ahead of Quarterly Expiry
The altcoins also face a dip waning risk-bet appetite of traders on the crypto prices. Notably, XRP price was one of the laggards among the top players in the crypto market.
Meanwhile, 28,068 XRP options with a notional value of more than $100 million are set to expire. The put-call ratio was 0.34, suggesting bullish sentiment among traders.
The max pain point was $3.10, above the market price of $3.02 at the time of writing.
However, traders expect the price to consolidate for longer despite the REX-Osprey XRP ETF recording massive buying on the first day.
Analyst Dom asserted that bulls failed to hold $3.12 area this week, increasing challenges for a push to $3.30.
He predicted a price target of $3.34 for the crypto after breaking out of a triangle, with XRP price expected to hit a new ATH if bulls support.
XRP price slipped 3% in the last 24 hours, with the price exchanging hands at $3.03. The intraday low and high were $3.03 and $3.14, respectively.
Moreover, trading volume dropped massively by more than 30%. It signals further downside in XRP price due to renewed selling pressure.