Bitcoin, $2.1 Billion Option Bomb Awaits...Will an All-Time High Rally Begin?

▲ Virtual Asset

As the expiration date for $2.1 billion worth of options approaches, the virtual asset market has reached a critical turning point between breaking through resistance and undergoing a downward correction.

According to crypto media outlet Cryptopotato on April 17 (local time), Bitcoin (BTC) and Ethereum (ETH) option contracts totaling $2.1 billion are set to be settled. Bitcoin options worth $1.6 billion, comprising 21,500 contracts, have matured. The put-call ratio, indicating the proportion of bullish and bearish sentiment, recorded 0.64. The maximum pain point, the price level where option buyers incur the largest losses, was found to be $70,000. The current price is above this, suggesting potential downward pressure before expiration.

Significant volatility is also expected in the Ethereum options market. 160,000 contracts worth $520 million are scheduled for settlement. The put-call ratio is 0.74, and the maximum pain point is $3,400. Ethereum's current trading price is also higher than its maximum pain point. There is a high possibility that the price will be suppressed around the expiration date. Experts believe that this volume digestion process will be a key variable in determining the short-term trend.

The virtual asset market generally maintains bullish sentiment. However, overcoming major resistance barriers is crucial. Bitcoin faces a sell wall in the $71,000 to $72,000 range. Ethereum is attempting to establish itself above the $3,500 level. Large-scale settlements serve as an opportunity to reshape market energy. Attention is focused on whether this expiration will be a catalyst for a rally or a pretext for a correction.

Past cases show extreme price volatility on the day of option expiration. After settlement is completed, there has been a clear tendency to establish a new direction. A temporary decline may occur due to the tendency of the price to converge towards the maximum pain point. However, after settlement, an influx of waiting buyers can lead to a rebound. If the volume is successfully digested, a strong rally could unfold over the weekend.

Investors are closely monitoring changes in supply and demand after option expiration. Large-scale derivatives settlements are a key factor in stimulating spot market liquidity. The true direction of the market is expected to be determined after settlement is completed. Attention is focused on whether the virtual asset market will break through resistance and turn upwards. Price volatility is expected to increase depending on when the supply and demand imbalance is resolved.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*