Bitcoin and Ethereum are trading under pressure as the broader crypto market slips into the red — and traders are nervously eyeing a major derivatives event that could amplify those moves. Crypto outlet Milk Road flagged on X that roughly $16.4 billion worth of BTC and ETH options are set to expire today. That scale makes it one of the largest single-day options expiries of the year, and such events are well known to boost volatility as traders unwind positions, adjust hedges and respond to shifting liquidity. Why this matters - Large expiries concentrate open interest around specific strikes, creating a “max pain” effect: prices tend to gravitate toward the strike(s) that would render the most options worthless and minimize losses for market makers. - With $16.4 billion at stake, Milk Road describes the expiry as a strong gravitational force that could pull BTC and ETH into a tug-of-war between options holders and spot traders. - Bitcoin carries the bulk of the notional exposure, but Ethereum holds a meaningful portion as well — so both assets are vulnerable to sharp swings ahead of the bell. What could happen next - As expiry approaches, increased volatility and liquidity shifts are likely as participants reposition. Traders holding unhedged spot into expiry are taking on extra risk. - Once the $16.4 billion of open interest is removed, the “max pain” pull disappears and the market will have to find a new directional bias. Where spot prices sit at that moment will heavily influence the next leg: if BTC and ETH are suppressed into expiry, the release could trigger a sustained rally; if they’ve been running hot, the unwind could produce a painful correction. Bottom line This large options expiry is a near-term structural event that could dictate liquidity and price action across the market. Traders should expect elevated volatility around expiry and consider their hedging and position sizing accordingly. Read more AI-generated news on: undefined/news
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