The cryptocurrency market is on high alert as billions of dollars in options for Bitcoin and Ethereum are set to expire. According to data from Greeks.live, a staggering $1.4 billion in Bitcoin options and $1 billion in Ethereum options are nearing their expiration dates. This development is significant, especially considering the market's recent shift towards a bearish sentiment.

The "max pain" point for Bitcoin options is estimated to be around $61,000, indicating that this specific strike price has the highest concentration of puts and calls. This means that traders on both sides of the trade would face the most significant losses if the price of Bitcoin reaches this level. Similarly, for Ethereum options, the "max pain" point is estimated to be around $3,000.

The market's bearish turn is largely attributed to massive outflows from Bitcoin exchange-traded funds (ETFs). Additionally, the implied volatility of all major terms continues to decline, further contributing to the bearish sentiment. As a result, the put-call ratio for Bitcoin options stands at 0.49, while for Ethereum options it is 0.36, indicating a higher demand for puts compared to calls.

The impending expiry of these options will likely have a significant impact on the crypto market. With billions of dollars at stake, market participants will be closely monitoring the price movements of these cryptocurrencies to gauge the potential losses or gains. As the expiration date approaches, the market's sentiment is expected to remain volatile, with traders on both sides of the trade adjusting their strategies accordingly.