The crypto market is about to face significant volatility as $3.98 billion in Bitcoin (BTC) and Ethereum (ETH) options contracts expire today. With Bitcoin options valued at $3.4 billion and Ethereum at $581.57 million, the expiration of these high-stakes options is expected to have a notable impact on short-term price action.

High-Stakes Crypto Options Expirations: What Traders Should Watch Today

According to data from Deribit, Bitcoin options will expire with 38,566 contracts, while Ethereum’s expiring contracts total 189,018. Compared to the previous week, the number of expiring contracts has decreased slightly, signaling that traders are preparing for a shift in market conditions.

For Bitcoin, the maximum pain price — a level where most options expire worthless — is set at $79,500, with a put-to-call ratio of 0.85. This reflects a generally bullish market sentiment, despite recent pullbacks. Ethereum’s maximum pain price is $3,000, and its put-to-call ratio stands at 0.92, further emphasizing positive market outlooks for ETH.

The maximum pain point is a key indicator in options markets, as it suggests where most options contracts will expire worthless, causing maximum financial pain for traders holding them. The put-to-call ratio—with values below 1 for both Bitcoin and Ethereum—signals that more traders are betting on price increases, reinforcing optimism for both assets.

Short-Term Volatility Expected

As options expiration dates draw near, traders should be prepared for heightened volatility, as this often leads to short-term price fluctuations. “The market could be very volatile, so trade with caution,” warned Wise Advice, a prominent Asian crypto influencer.

Despite the potential for short-term turbulence, markets typically stabilize after the expiration, once traders adjust to the new price levels. As Bitcoin and Ethereum options near expiration, their prices may converge on the strike prices where the maximum number of contracts will expire worthless. This scenario is in line with the Max Pain theory, which predicts such convergence as options prices approach the strike levels.

Year-End Crypto Options Expiry: A Bigger Catalyst?

While today’s expiration is significant, more major challenges lie ahead. In addition to the $4 billion expiring today, the end of the year will bring another set of high-value options expirations, potentially around $11.8 billion for Bitcoin by December 27. Historically, Bitcoin bull runs tend to peak around the year-end, with some extending into the early months of the new year.

This upcoming expiration could present a major catalyst for price action, potentially influencing Bitcoin’s trajectory into 2025. Many traders are eyeing Bitcoin’s potential to reach $100,000 before the end of the year. However, larger traders on the short side may attempt to limit price discovery, creating a tug-of-war for market dominance as the year closes.

Outlook for Bitcoin and Ethereum

The current data shows that Bitcoin’s price has dropped by 2.46%, trading at $87,813, while Ethereum has fallen by 5.43%, now at $3,053. Traders will be watching these levels closely to gauge whether the short-term expiration will influence broader market trends.

With a polarized market—where some traders remain bullish and others are betting on short-term declines—the expiration of these options could have ripple effects well beyond today’s date, setting new market standards for both Bitcoin and Ethereum in the coming months.