$4.6 Billion in Bitcoin and Ethereum Options Expire Amid Post-Election Market Volatility

Election Impact, FOMC’s Rate Decision Add to Market Tension

According to Deribit, today’s options expiration should see 48,794 contracts expire, worth approximately $3.7 billion. Bitcoin options have a put-to-call ratio of 0.72. They also have an estimated maximum pain point set at $69,000. At this level, option holders would face the biggest potential losses. For Ethereum, 294,380 contracts will expire, valued at around $855 million. These contracts hold an estimated put-to-call ratio of 0.65, with a maximum pain point at $2,500.

This price level is critical for options holders. The “maximum pain” point means most options—both calls and puts—would lose value, leading to potential losses for traders.

Rising Trading Volumes and Bitcoin’s All-Time High Amid Election Hype

November 6 saw daily trading volumes soar to $10.8 billion on Deribit as anticipation built around the elections, with speculation over a Trump victory driving volume. During this period, Bitcoin touched an all-time high of $75,100, reflecting investor optimism.

However, as election hype settles, many option holders are locking in gains. According to Greeks.live, analysts expect a pullback in speculative trading as the election season winds down, with Bitcoin’s “doomsday” options—early exit contracts—falling below 50%.

Federal Reserve’s Rate Cut Shapes Crypto Strategy

The FOMC’s recent decision to reduce interest rates by 0.25% added further uncertainty. Federal Reserve Chair Jerome Powell stated that further rate hikes aren’t in the plan, hinting at a measured approach to inflation. His comments highlighted the ongoing impact of high prices, adding a new layer of complexity for investors.

As today’s expiration approaches, both individual traders and large investors are keeping a close eye on market moves, with many planning strategies ahead. This day could set the tone for crypto’s trajectory amid a climate of heightened volatility.