Bitcoin and Ethereum Market See Repositioning After $1.35B Options Expiry, Anticipate US Elections to Stir Sentiments

The cryptocurrency market is experiencing some volatility as the calendar moves into the last quarter of the year. The recent expiration of $1.35 billion worth of Bitcoin and Ethereum options has not created volatility in the market. It may lead to price increases as investors rebalance their portfolios ahead of the US elections.

The cryptocurrency market experienced some volatility on Monday (Oct. 4) as a large amount of Bitcoin and Ethereum options expired, impacting both assets.

These options contracts, which give the holder the right but not the obligation to buy or sell an asset at a specified price, play a significant role in the crypto market, often influencing price movements.

This month, the options expiring on Monday were valued at $1.35 billion, affecting both Bitcoin and Ethereum.

The Put Call Ratio (PCR) for Bitcoin was 0.75, indicating a higher interest in the lower Put options and a max pain point at $63,000. A PCR below 1 suggests that investors are leaning towards Put options, which could indicate a pessimistic outlook.

On the other hand, the PCR for Ethereum was 0.68, with a max pain of $2,500, indicating a stronger interest in Call options and a bullish sentiment among investors.

The cryptocurrency experienced a positive week as both Bitcoin and Ethereum prices increased on Monday (Oct. 4). Both assets maintained their stability as well as growth in the last 24 hours.

The value of Bitcoin increased by 2.59% with the price standing at $62,267 in the last one day. At the same time, Ethereum price also rose and was trading at $2420, a 2.8% rise in the last 24 hours.

At the moment it has a market capitalization of $291.42 billion. These movements could be attributed to the traders repositioning themselves after the options expiry.

Moreover, the fourth-quarter usually brings positive sentiments for the crypto market. Past trends have shown that major digital assets, such as Bitcoin and Ethereum, tend to experience a bullish rally during the last month of the year.

Anticipation of U.S. Elections Stirring Market Sentiments

Another crucial event that is expected to impact the financial markets, including cryptos, is the U.S. elections.

These elections are usually accompanied by market volatility and a surge in speculative trading. The open interest behavior for Bitcoin suggests that we are gearing up for more range-bound moves with focus on the approach expiries.

This could result in higher levels of trading and even price volatility especially in the days leading to the elections.

However, the Ethereum market looks somewhat different from the overall positive sentiment of the Bitcoin market.

Given that the majority of its options contracts are set to expire and that options contracts have more calls than puts, the sentiment on Ether is bullish.

The notional value of such options and the heavy concentration of the open interest towards the year end expiry point to the fact that investors are bullish on ETH in the near future.

In other news, Bitcoin had a strong close at the end of September, which also brought positive conclusions for the cryptocurrency.

While October is not known for being a favorable month for Bitcoin, it is also not new to the crypto community that October is usually anticipated by enthusiasts for its potential to bring about great heights for BTC.

This month is often dubbed “Uptober” by enthusiasts and it sparks speculations about BTC potential to reach new heights. Past performance also indicates a strong optimistic view for October, hence the high expectations by investors for large returns.

According to some market specialists and analysts, Bitcoin has all the chances to rise above the $100K mark by the end of the year.

However, not all market analysts believe in this point of view. Some more experienced traders are still cautious and note that Bitcoin has to break through the resistance level in order to start a bullish trend.

A recent analysis also reveals that the BTC price has a potential of falling to $60,000 due to the escalated tensions in the Middle East.

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