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BTC and ETH Maximum Pain Point: The Implications of Expired Option Contracts

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On March 10, according to Deribit data, option contracts with more than US $500 million BTC and US $360 million ETH will expire and be delivered today. The max…

BTC and ETH Maximum Pain Point: The Implications of Expired Option Contracts

On March 10, according to Deribit data, option contracts with more than US $500 million BTC and US $360 million ETH will expire and be delivered today. The maximum pain point price of BTC is US $22500; The maximum pain point price of ETH is $1600.

Data: US $500 million BTC and US $360 million ETH option contracts will expire and be delivered today

Analysis based on this information:


According to Deribit data, the expiration and delivery of option contracts for BTC and ETH with over US $500 million and US $360 million, respectively, will occur on March 10. The implications of these expired options are significant and worthy of discussion.

Firstly, it is essential to understand what option contracts are and how they work. Option contracts give buyers the right, but not the obligation, to buy or sell an underlying asset, such as a cryptocurrency, at a predetermined price (strike price) and time. There are two kinds of options: calls and puts. Call options give the buyer the right to buy an asset at the strike price, while put options give them the right to sell the asset at the strike price.

Now, what we know is that option contracts with a combined value of over US $860 million for BTC and ETH are expiring on March 10. This means that those who hold these options will have to decide whether to exercise their right to buy or sell BTC or ETH at the predetermined strike prices. These decisions can lead to significant price movements in the market as buyers and sellers scramble to execute their trades before the deadline.

Furthermore, the maximum pain point price is an essential metric to consider for options traders. This metric refers to the price at which options expire worthless, resulting in maximum pain for all parties involved. The maximum pain point for BTC is US $22,500, and for ETH, it is $1,600. These levels are significant psychological barriers that traders will be watching closely. If the price of BTC or ETH falls below their maximum pain points, it could lead to panic selling and more price drops, potentially triggering a bear market.

In conclusion, the expiration and delivery of option contracts for BTC and ETH, coupled with the significance of the maximum pain point price, will undoubtedly have an impact on the crypto market’s price dynamics. Traders and investors will be closely monitoring the situation to determine whether the crypto market will experience a bull or bear run in the coming days.

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