The expiration of the major Bitcoin and Ethereum options follows a major leverage washout, with open interest clusters nearing maximum pain while both trade just below key resistance.
Summary
- About 147,000 bitcoin options and 573,000 ethereum options expire Friday, with put/call ratios below 1 and heavy open interest near maximum pain.
- The recent upward surprise in the PPI and a sharp decline in derivatives open interest indicate a leverage flush rather than a confirmed new bear market.
- Deribit note positioning has stabilized around key support and resistance zones as cryptocurrency market caps remain steady and majors hover just below resistance.
According to market data, approximately 147,000 Bitcoin options contracts are set to expire on Friday, November 28, which represents higher-than-normal churn due to month-end timing.
The expiring BTC (BTC) options contracts have a put/call ratio of 0.58, indicating more long contracts than short positions, according to Coinglass data. The highest concentration of open interest on Deribit is clustered around the maximum pain strike level, with additional significant open interest at lower strike prices.
U.S. Government Producer Price Index Inflation facts released this week exceeded expectations, economic reports show. CryptoQuant reported earlier this week that the market experienced the largest drop in open interest of the current cycle, characterizing the move as a major leverage squeeze rather than the start of a bear market.
Bitcoin and Ethereum options are coming to the market
“Positioning appears to have stabilized following recent volatility, with open interest now centered around the key level despite fears,” Deribit said in a note report. The exchange noted that an increased call rate could indicate improving market sentiment after recent volatility.
In addition to BTC options, about 573,000 ETH (ETH) options contracts also expire on Friday, with a put/call ratio of 0.50, according to exchange data. The combined notional value of Friday’s crypto options expiration represents a significant amount for both cryptocurrencies.
“Following the recent deleveraging in the crypto markets, positioning has cooled to a more neutral stance around a key support and resistance zone,” Deribit said.
According to market data, the cryptocurrency market capitalization has remained relatively stable over the past 24 hours. Bitcoin tested the resistance levels multiple times but failed to break through and traded just below that threshold. Ethereum fell below a key resistance level during Asian trading hours.
