Today, about $3 billion in Bitcoin (BTC) and Ethereum (ETH) options are set to expire. This is creating a buzz in the crypto market. Expiring options often lead to significant price swings, so traders and investors are keeping a close eye on what happens.

According to data from Deribit, there are 23,481 Bitcoin contracts expiring today. These have a total value of around $2.29 billion. The put-to-call ratio for Bitcoin stands at 1.11. The maximum pain point, which is the price that causes the most financial losses for holders, is set at $97,000. Most contracts will likely expire worthless at this level.

Analysts from Greeks.live shared their insights on the current market situation via their official account on X (formerly Twitter). They noted, “Bitcoin hit $100,000 from zero in just ten years, creating a legend. Trump congratulated it, bringing crypto into the mainstream. Recently, a sharp drop cleared a wave of leverage; other coins didn’t follow. The long positions in the overall crypto market are strong. Sentiment is optimistic, with solid long forces in the spot bull market.”

However, it’s important to note that high funding rates for leveraged contracts indicate overextended bullish bets. This raises the chances of a market pullback. A recent report from BeInCrypto highlighted that Bitcoin options traders are hedging against potential declines, showing increasing interest in put options.

Currently, Bitcoin’s put-to-call ratio is above 1, reflecting a mostly bearish sentiment. In contrast, Ethereum’s put-to-call ratio is at 0.63, suggesting a generally bullish outlook for ETH. Over 148,733 Ethereum contracts are also expiring today, with a total value of about $581 million. The maximum pain point for Ethereum is $3,500. As of now, Ethereum has seen a slight rise of 0.73% since Friday, trading at $3,902.

Recently, Bitcoin reached a local high around $104,000 but has since corrected to $97,693. This rapid decline is due to several factors. Many traders were using borrowed funds to bet on BTC’s price increase, leading to massive liquidations when the price dropped. Profit-taking after hitting the $100,000 mark also contributed to this correction. Large sell orders around the $110,000 level may have triggered further profit booking.

According to Greeks.live, nearly two weeks of options market data have shown caution among market makers. The impact of Bitcoin breaking the $100,000 milestone, along with the recent pullback, has caused short-term implied volatility (IV) to rise significantly. They stated, “Market makers are avoiding exposure to the market. The likelihood of the market remaining extremely bullish is high.”

As these Bitcoin and Ethereum options contracts near expiration, prices are likely to move toward their maximum pain levels. However, keep in mind that the impact of option expiration on the underlying asset’s price is usually short-lived. The market typically returns to its normal state afterward, compensating for any strong price deviations.