#BTC Hits New High#  $5 Billion Worth of Bitcoin and Ethereum Options Expire Today: What Should Traders Expect?

High volatility is expected in the European session. More than $5 billion worth of Bitcoin and Ethereum options expire today.

Bitcoin's maximum pain level is $108,000, while Ethereum's is $2,600. Price movements towards these levels are possible.

Highly leveraged trading and speculative market activity indicate excessive risk-taking, increasing potential price swings.

While Bitcoin (BTC) showed strength in the US session, traders and investors should expect volatility in the early hours of Friday's European session as options expire.

However, this effect is likely to be short-lived as markets quickly adapt to new trading environments.

What Traders Need to Know About Today's Options Expiration

According to data, $5.03 billion worth of Bitcoin and Ethereum (ETH) options are set to expire today. The notional value of the options expiring for Bitcoin is $4.3 billion, and the total number of open interest is 36,970.

The maximum pain level for Bitcoin options today, with a put-to-call ratio of 1.06, is $108,000.

For Ethereum, the notional value of ETH options expiring today is $712.35 million, and the total number of open interest is 239,926.

Like Bitcoin, the put-to-call ratio for Ethereum options expiring today is above 1, currently at 1.11, according to data. Meanwhile, the maximum pain level, or strike price, is $2,600.

In particular, Bitcoin and Ethereum options expiring today are significantly higher than last week. On July 4th, $3.6 billion worth of options were reported expiring, encompassing 27,384 BTC and 237,274 ETH contracts, with face values ​​of $2.98 billion and $610 million, respectively.

However, the main similarity between this week's expiring options and last week's is that both have put-to-call ratios (PCR) above 1.

A PCR above 1 indicates that more put options are being traded than call options, indicating bearish market sentiment.

Bitcoin's PCR of 1.06 and Ethereum's of 1.11 suggest a balanced exchange between sell and buy orders among traders. This balanced outlook occurs as investors speculate on whether the market will decline or protect their portfolios in the event of a sell-off.

The maximum pain point is a key metric in cryptocurrency options trading. It represents the price level at which most options contracts expire worthless. This scenario results in the maximum financial loss, or "pain," for traders holding these options.

This concept is important because it often influences market behavior. According to the Maximum Pain theory, the asset's price tends to trend toward this level as options expire.

As options expire at 8:00 UTC, Bitcoin and Ethereum prices may fall toward these levels. However, this doesn't mean they will fall to $108,000 for BTC and $2,600 for ETH.

Markets typically stabilize quickly after traders adjust to the new price environment. With today's high volume expiration, traders and investors can expect a similar outcome, which could influence market trends heading into the weekend.