The crypto market is gearing up for a significant event this week, with over $9.4 billion in crypto options set to expire on Friday. This expiration, which includes both Bitcoin and Ethereum options, could provide traders with valuable insights into the direction of the market.

While the recent Bitcoin halving has generated optimism among investors, the crypto market has yet to see a substantial price rally. However, traders are eagerly awaiting the first crypto market expiry after the halving, which is also a monthly expiry, and could lead to increased volatility.

According to Deribit, over 94,000 Bitcoin options with a notional value of $6.3 billion are set to expire on Friday. The put-call ratio is currently at 0.68, indicating a recent increase in put options as the monthly expiry approaches. The max pain point for Bitcoin is $61,000, which is below the current price, and traders can expect significant volatility on the expiry day.

Similarly, over 941,000 Ethereum options with a notional value of $3.1 billion are set to expire, with a put-call ratio of 0.49. The max pain point for Ethereum is $3,100, with the current price trading above this level.

In the past 24 hours, there has been an increase in put open interest, with a put/call ratio of 0.84, indicating a potential decline in price to the max pain point.

Deribit has also reported a surge in realized volatility, with the BTC Volatility Index (DVOL) seeing a sharp increase as the crypto options expiry nears.

On-chain analyst IT Tech has warned of potential liquidation in the short-term due to high leverage, with more selling orders being filled in the CVD Perp and early signs of demand in the CVD Spot. This could set the stage for a potential recovery in BTC price and a massive rally.

The BTC price remains volatile, currently trading near $66,500, with a 24-hour low and high of $65,864 and $67,148, respectively. The trading volume has decreased slightly in the past 24 hours.

Total Bitcoin futures open interest across crypto exchanges has increased by over 1% in the past 24 hours, with buying mostly coming in the last few hours. The BTC futures OI of 480.07K is worth $31.96 billion.

A new whale has accumulated 500 BTC worth $33 million amid consolidation, potentially indicating a move towards $70,000. However, the U.S. PCE inflation data set to release on Friday could keep trading activity flat.

The U.S. dollar index (DXY) has fallen slightly under 106, but remains high compared to earlier weeks, while the U.S. 10-year Treasury yield (US10Y) has jumped to a 6-month high of 4.636%, putting pressure on the Bitcoin price.