A Notable Event: Bitcoin and Ethereum Options Contracts Set to Expire
A recent report has unveiled an upcoming significant event in the crypto market. According to data shared by global options trading service platform Greeks.live, a notable amount of Bitcoin (BTC) and Ethereum (ETH) options contracts are set to expire.
Bitcoin Options Contract
The report reveals that approximately 37,000 BTC options contracts with a notional value of $1.58 billion are about to expire. The current put-call ratio for Bitcoin is 1.02, indicating a higher number of puts (sell) than calls (buy) options. The “Maxpain” point for Bitcoin is $42,000.
Ethereum Options Contract
For Ethereum, around 268,000 options contracts valued at $610 million are set to expire soon. The put-call ratio for ETH is 0.66, suggesting a negative outlook among traders. The “maxpain” point for Ethereum is $2,250.
The Significance of Put-Call Ratio and Maxpain Point
The put-call ratio compares the trading volume of put and call options. A ratio higher than 1 indicates a negative sentiment among traders. The maximum pain (Maxpain) point refers to the price at which the highest number of options would expire worthless.
Market Decline and Trading Activity
Greeks.live noted that the market experienced a decline recently, with BTC dropping close to $40,000. Consequently, there has been a greater proportion of Put positions than Call positions this week as traders hedge their positions. Despite the decline, Bitcoin options remain the primary focus in trading activity.
Billions of Inflow Expected for Bitcoin and Ethereum
Cryptocurrency analyst Ali has revealed that billions of dollars are set to flow into Bitcoin and Ethereum. This influx of capital, amounting to over $19.7 billion, is comparable to what was observed in December 2020. Ali highlighted a previous scenario where BTC’s price surged from $18,000 to $65,000 after a similar inflow.
Hot Take: Crypto Market Poised for Further Profits
With billions of dollars expected to flood into Bitcoin and Ethereum, the crypto market may be poised for further profits. This substantial inflow of capital could drive the prices of these major cryptocurrencies higher, potentially benefiting investors and traders.
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