While This Is A First For Bitcoin In The Bull Market, Option Data Paints A Negative Picture For BTC: Will The Decline Continue?

As the selling pressure on Bitcoin continued, the price fell below $41,000.

While it remains unclear whether the decline in BTC will continue or not, all eyes are on Bitcoin and Ethereum options that will expire today.

According to the news of Singapore-based crypto options data platform Greeks.live, 22,000 BTC and 211,000 ETH options will expire on January 19.

Accordingly, while the Put/Call Ratio of BTC options is 1.1, the maximum loss point is $44,000 and the notional value is $890 million.

Looking at Ethereum, ETH options have a Put/Call Ratio of 0.55, a maximum loss point of $2,500, and a notional value of $520 million.

Stating that the Pull/Call ratio reached 1.1 for the first time in the bull market, Greeks.live said:

“The impact of the Bitcoin Spot ETF disappeared as volatility dropped sharply and Maxpain approached delivery price for the first time this year.

PCR reached 1.1 for the first time in the bull market, indicating that bearish forces prevailed this week.

The transition of the Bitcoin Spot ETF, Grayscale sell-off looks like it will bring a lot of incremental capital into the crypto market in the long term, and it looks like the sell-off will only increase in the short term.

“The next big flashpoint at this point could be Bitcoin halving.”

The put/call ratio is calculated by dividing the number of put options by the number of call options. A ratio below 1 means there are more purchases than puts, indicating an upward trend.

A ratio above 1 means there are more put options than call options, indicating a bearish trend. A ratio close to 1 means the market is balanced or neutral.

For Bitcoin, this rate is 1.1; For Ethereum it appears as 0.55. Accordingly, if this ratio is above 1 for BTC, it indicates that sales in Bitcoin are higher than purchases and the price is in a downward trend; It indicates a bullish trend for ETH. However, time will tell how these rates, along with other data and signals, will affect prices.

*This is not investment advice.