Today marks a crucial moment for the cryptocurrency market as over $3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are set to expire on Deribit at 8:00 UTC. With $2.5 billion in BTC contracts and nearly $500 million in ETH contracts settling, traders are bracing for potential price swings.
Will Bitcoin Hold Steady or Face Another Drop?
Large options expirations often trigger sharp price movements, leading to heightened market uncertainty. The key question remains: Will Bitcoin maintain stability, or is another wave of volatility about to hit?
Bitcoin’s options data suggests a mix of market sentiment. The put-to-call ratio sits at 0.67, indicating a higher number of call options (bets on price increases) than put options (bets on declines). The “maximum pain” level, where the most losses occur for options traders, is set at $89,000. Ethereum, meanwhile, has a put-to-call ratio of 0.72, with a maximum pain level of $2,300. This implies traders are leaning slightly bullish, despite recent turbulence.
Bearish Sentiment Looms Over the Market
Despite some optimism, the overall sentiment remains bearish. Bitcoin recently experienced a sharp $6,000 drop, complicating trading conditions and leading to substantial liquidations. Analysts at Greeks.live have identified key resistance levels between $87,000 and $89,000, while $82,000 remains a critical support level. However, uncertainty persists over whether this support will hold, prompting many traders to hedge against further losses with put options.
https://t.co/n0OcjSGEsP Community Daily Digest
— Greeks.live (@GreeksLive) March 5, 2025
Published: 2025-03-05
Overall Market Sentiment
The group is predominantly bearish with traders anticipating further downside while experiencing frustration with extreme chop and volatility. Most traders are watching the 87-89k…
Market Caution Amid Political and Economic Uncertainty
Adding to market jitters is President Trump’s recent executive order regarding Bitcoin reserves. While details remain unclear, this development has sparked speculation and could influence market movements in the coming days.
Following the announcement, Bitcoin dropped 5% to $84,667, triggering $261 million in liquidations. If the downtrend continues, Bitcoin could test support at $85,357 or even drop further to $80,580. Conversely, renewed buying interest could push the price above $90,000, with resistance at $92,247.
Also Read: Bitcoin Drops 5% as Trump’s Strategic Bitcoin Reserve Disappoints Investors
With a massive options expiry, regulatory uncertainty, and price swings at play, the next few hours will be critical for the market. Traders are watching closely to determine Bitcoin’s next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
