How Will Crypto Market React to Over $15B in Bitcoin, ETH, XRP Options Expiry?

Core Viewpoint - The crypto market is preparing for significant volatility due to the upcoming expiry of over $15 billion in Bitcoin, Ethereum, and XRP options, amidst a backdrop of 'extreme fear' sentiment among traders [1]. Group 1: Bitcoin Market Insights - Bitcoin price has rebounded by more than 10% in a week, driven by buy-the-dip sentiment and seasonal trends between Thanksgiving and Christmas [2]. - More than 147,000 BTC options, with a notional value of $13.42 billion, are set to expire, indicating a positive sentiment with a put-call ratio of 0.56 [3]. - The max pain price for Bitcoin is at $100,000, with a put/call ratio of 1.12 suggesting bearish sentiment among options traders [5]. Group 2: Ethereum Market Insights - Over 574,000 ETH options, with a notional value of $1.73 billion, are set to expire, showing a put-call ratio of 0.48, indicating positive sentiment among traders [8]. - The max pain price for Ethereum is at $3,400, which is higher than the current market price of $3,014, suggesting expectations of a rebound [8]. Group 3: Market Conditions and Sentiment - The crypto market is experiencing liquidity shrinkage and a surge in realized losses, leading to expectations of a potential selloff [6]. - Bitcoin's trading volume has decreased by 30% over the past 24 hours, reflecting cautious behavior among traders [7]. - The overall market sentiment remains defensive, with futures deleveraging and weak demand [6].