Bitcoin and Ethereum price predictions following $18 billion options expiry

Bitcoin has been on a bit of a rollercoaster lately, dropping from its peak prices and undergoing a 3-day correction. Now, experts are predicting that it will most likely test support at around $31,328.

In recent days, the cryptocurrency market has been abuzz with the expiration of a whopping $18 billion worth of options contracts for both Bitcoin and Ethereum. This is a record-breaking event that indicates a lot of activity and interest in the cryptocurrency space.

This huge moment could be a game-changer for the market, potentially leading to some wild price swings and volatility that could shape future expectations. The total value of the expired Bitcoin options contracts was about $14.38 billion, while Ethereum’s options amounted to $3.7 billion. These massive numbers reflect the market’s increasing focus on profit-taking and risk-hedging, giving us a glimpse into what investors are thinking.

The sheer volume of these expired contracts is staggering, with Bitcoin at 88,537 contracts and Ethereum at 796,021 contracts. This suggests that investors have differing opinions on where these assets are headed in the future.

Interestingly, the put-to-call ratios for Bitcoin and Ethereum are showing some interesting trends. Bitcoin’s ratio indicates optimism and confidence in price increases, while Ethereum’s ratio shows strong confidence in its continued growth. These low ratios suggest that investors are leaning towards call options rather than puts, signaling a positive outlook for the market.

Both Bitcoin and Ethereum are currently trading above their respective “maximum floor prices” of $85,000 for Bitcoin and $3,000 for Ethereum. This means that the market is holding strong above these levels, showing resilience and readiness for potential upward movements.

As we head into 2025, investors are bracing for the possibility of increased volatility in the market. With bullish sentiments prevailing, any unexpected changes could lead to significant shifts in market trends. On-chain indicators for Bitcoin are looking positive, with increasing buying pressure on exchanges and growing institutional interest in the asset. Ethereum, on the other hand, is gaining momentum due to the rise in adoption of its decentralized applications.

In conclusion, investors should stay alert in the coming days as the expiration of these large options contracts may bring about unexpected changes in the market. Understanding these trends and their short-term impacts will be crucial for making informed investment decisions in the cryptocurrency space. Remember, the market is always evolving, so it’s essential to stay tuned for new opportunities and possible risks.