The crypto market braces for one of the largest monthly expiry today as massive amounts of Bitcoin and Ethereum options are set to expire. The market is expected to experience volatility for several days from this Friday’s monthly expiry to the U.S. Federal Reserve’s rate hike monetary policy decision on May 3.
Bitcoin and Ethereum prices remain under selling pressure as traders look for BTC price to cross the $30,000 psychological level and ETH price over $2,000.
Large Bitcoin and Ethereum Options Expiry
105.8k BTC options with a notional value of $3.1 billion are about to expire on Friday, April 28. The Put/Call Ratio is 0.86, with call open interests of 56,908 and put open interests of 48,894. The max pain is at 27,000. Max pain point is the price at which the largest number of options holders face financial loss. Currently, the BTC price is trading near the $29,500 level.
In addition, 807.2k ETH options are set to expire, with a notional value of $1.55 billion. The Put/Call Ratio is 0.78, with call open interests of 452,633 and put open interests of 354,620. The max pain is at 1,800. Currently, the ETH price is trading above the $1,900 level.
BTC Price to Rally Above $30,000
While the BTC price uptrend is intact above the 50-day moving average, volatility will exert some pressure. The U.S. Fed is expected to increase interest rates by another 25 bps. As per CME FedWatch data, there’s an 88.6% probability of a 25 bps rate hike and an 11.4% probability of no hike.
The U.S. Dollar Index (DXY) showing volatility, climbing 0.17% to 101.68 on the day of Bitcoin expiry. Thus, BTC price is anticipated to fall if DXY continues to rise until the Fed rate hike decision next week.
Meanwhile, ETH price will also remain under pressure due to selloffs by whales and profit-taking by future traders at higher levels. The trading volume for both BTC and ETH fell in the last 24 hours as traders anticipate volatility in the next few days.
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