On February 28, 2025, the cryptocurrency market is experiencing heightened volatility as approximately $5.78 billion in Bitcoin (BTC) and Ethereum (ETH) options reach their expiration. This significant event coincides with notable declines in both cryptocurrencies' prices, influenced by recent macroeconomic developments.
Bitcoin and Ethereum Options Expiry
Data from Deribit indicates that 59,000 Bitcoin options contracts, with a notional value of $4.68 billion, are set to expire today. These contracts have a put-to-call ratio of 0.71, suggesting a higher number of call options relative to put options. The maximum pain point—the price at which the greatest number of options holders would experience financial losses—is identified at $96,000, significantly above current trading levels. Similarly, 529,000 Ethereum options contracts, valued at $1.11 billion, are expiring, with a put-to-call ratio of 0.52 and a maximum pain point of $3,000.
Current Market Performance
As of 5:27 PM GST on February 28, 2025, Bitcoin is trading at approximately $80,811, reflecting a decrease of 6.29% from the previous close. The day's trading range has seen a high of $86,623 and a low of $78,240. Ethereum is currently priced at $2,122.80, down 9.68%, with intraday highs and lows of $2,354.02 and $2,082.75, respectively.
Macroeconomic Influences
The recent downturn in cryptocurrency prices is partly attributed to macroeconomic uncertainties. President Trump's announcement of new tariffs on imports from China, Canada, and Mexico has raised concerns about global economic growth and inflation. These developments have led to a stronger U.S. dollar, making non-yielding assets like Bitcoin less attractive to investors.
Market Implications
The convergence of substantial options expirations and macroeconomic pressures is contributing to increased market volatility. Traders and investors are closely monitoring these events, as the outcomes may influence short-term price movements and inform future trading strategies. While the expiration of options contracts often leads to price fluctuations, the added layer of economic policy changes underscores the importance of vigilance in the current market environment.