Bitcoin hit its annual high of $2.2 billion at the end of the options period

The crypto market ended today with $2.29 billion in Bitcoin and Ethereum options contracts. This large time lag could impact short-term price action, especially since both assets have recently declined.

With Bitcoin (BTC) options at $1.94 and Ethereum at $344.92 million, traders favor the volatility of the exchange.

Crypto options expire today

This Friday's Bitcoin options expiration includes 28,125 contracts, according to Deribit data. Expiring options for Ethereum total 137,866 contracts.

These expired Bitcoin options have a maximum strike price of $69,000 and a call ratio of 0.92. As the call-to-call ratio stands below 1, this suggests a generally bearish sentiment despite BTC's 4% decline. In comparison, their Ethereum counterparts have a maximum strike price of $2,550 and a call ratio of 0.69, reflecting a similar market outlook.

Read more: Introduction to Crypto Options Trading.

According to Greece.Live analysts, the recent drop in prices and external factors, such as the upcoming US election, have led to a slight increase in implied volatility (IV). However, as BTC's pain point is at a yearly high, they note that there are excellent trading opportunities in the market right now.

“Bitcoin hit $73,500 this week, just $100 shy of a new all-time high, but it's also moved into high gear, below $70,000. This week the Maxpain score reached a new high for the year, while Ether instead struggled to a new low for the year and the Maxpain score fell this week. The main market thread this week is the US election, and now that BTC ATM IV is close to 70% on November 8, and BTC is shaking near new highs, there are very good trading opportunities in all aspects, “said analysts.

According to BeenCrypto, Bitcoin is currently trading at $69,268 while Ethereum is at $2,503. This puts BTC above its peak pain point, while ETH stays below it. The Max Pain Theory states that options prices converge to strike prices at maximum pain points, known as Max Pain Points, when the maximum contract stock expires.

For Bitcoin, this indicates a potential retracement of the $69,000 high pain point, which could create short-term market volatility. While the expiration of options can cause temporary inflation, markets generally stabilize shortly thereafter.

With today's high volume of expirations, traders should anticipate similar changes that could shape short-term crypto trends. Price pressure on BTC and ETH will decrease after Deribit closes contracts on Friday at 08:00 UTC.

Read More: 9 Best Crypto Options Trading Platforms

Markets should be buoyed by volatility due to non-farm payrolls (NFP) today, the first Friday of November. This US macro data, coupled with Tuesday's US election, could set the next trend.

“We have NFP tomorrow and the US election next week so don't force any trades until then. Watch the market, and only take clear A+ setups – nothing less is worth it anyway,” wrote a trader on X.