BTC and ETH Options Face Max Pain and Market Volatility, Greeks.live Analysis

• Greeks.live shared the option trading data for Bitcoin and Ethereum for January 5.
• 22,000 Bitcoin options are about to expire with a put call ratio of 0.62.
• 255,000 Ethereum options are about to expire with a put call ratio of 0.54.

Crypto options trading expert Greeks.live shared the option data for Bitcoin and Ethereum for January 5. According to the data, 22,000 Bitcoin options and 255,000 Ethereum options are about to expire with a put call ratio of 0.62 and 0.54, respectively. 

Greeks.live shared on X that 22,000 Bitcoin options are about to expire with a max pain point of $43,500 and a notional value of $960 million. Meanwhile, 255,000 Ethereum options are about to expire with a max pain point of $2,300 and a notional value of $580 million. 

The announcement added that the market suffered a massive sell-off this week when the Bitcoin spot ETF failed to pass as expected. As a result, a large amount of high leverage that had been accumulated in the prior period was liquidated, causing sharp volatility in the market. 

The report claimed that short-term implied volatility (IV) has sharply increased. Moreover, the market is reportedly actively speculating on the approval of ETFs, with IVs reaching 80% or more.

Greeks.live noted that the next week is crucial as it is the deadline for the approval of ETFs, and significant market movements are expected regardless of the outcome. “Things will always come to a head whether [the ETFs] are passed or not,” stated the trading expert.

Greeks.live concluded by claiming that the crypto derivatives market is currently anticipating ETF approval. Furthermore, the data predicts that this week’s “dramatic volatility” may not happen again soon with the current funding rates and leverage levels in the market.