Bitcoin and Ethereum on alert as $3b worth of options expire on Friday

Ethereum Open Interest by Strike, Source: Deribit

Analysts have mixed views on the impact of todays options expiry. Some believe it could lead to short-term volatility and influence market sentiment, potentially driving prices higher if the prevailing sentiment is bullish. Others view it as a routine event with limited long-term impact, suggesting that while price swings may occur, broader factors such as regulatory developments and macroeconomic conditions will continue to play a significant role in market trends.

What to expect in the market post-expiry

Following the expiration of these options contracts, traders should be prepared for potential short-term volatility as the market adjusts. If bullish sentiment prevails, we could see upward price movements, particularly if key resistance levels are breached.

Conversely, if bearish sentiment dominates, prices may face downward pressure. Its essential for traders to monitor market indicators and news closely, as external factors like regulatory changes and macroeconomic developments could also influence market direction in the coming days.