While the leading cryptocurrency Bitcoin continues its volatile movements after the approval of spot Bitcoin ETFs in the USA, eyes are turned to Bitcoin and Ethereum options that will expire today.
According to the news of Singapore-based crypto options data platform Greeks.live, 36,000 BTC and 262,000 ETH options will expire on January 12.
Accordingly, while the Put/Call Ratio of BTC options is 0.9, the maximum loss point is $45,000 and the notional value is $1.68 billion.
Looking at Ethereum, ETH options have a Put/Call Ratio of 0.64, a maximum loss point of $2,400, and a notional value of $680 million.
Stating that volatility was experienced during the week due to the events regarding the approval of spot Bitcoin ETFs, Greeks.live said:
“Bitcoin Spot ETF passed this week as expected and received approval. However, repeated fake news and breaking news have made the market frequently and sharply volatile, and as mentioned earlier this week, LONG GAMMA will be very cost-effective this week.”
The adoption of the Bitcoin Spot ETF is likely to bring a lot of incremental capital into the crypto market in the long term, but there is still significant uncertainty in the short term due to a number of factors and sharp volatility in the market. “Volatility may continue for a few days like this week.”
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 0.9; For Ethereum it appears as 0.64. Accordingly, while this ratio is closer to 1 for BTC and indicates a neutral tendency; It indicates a bullish trend for ETH. However, time will tell how these rates, along with other data and signals, will affect prices.
Jan12 Options Data
36,000 BTC options are about to expire with a Put Call Ratio of 0.9, a Maxpain point of $45,000 and a notional value of $1.68 billion.
262,000 ETH options are due to expire with a Put Call Ratio of 0.64, a Maxpain point of $2,400 and a notional value of $680… pic.twitter.com/LSKNGKVjrH— Greeks.live (@GreeksLive) January 12, 2024
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/a-large-number-of-options-expire-today-in-bitcoin-and-ethereum-what-does-the-data-point-to-for-btc-and-eth-prices-fall-or-rise/