Bitcoin and Ethereum prices are expected to experience volatility as global investors prepare for the first monthly expiry following the approval and listing of spot Bitcoin ETFs. After the listing, BTC price and trading volumes declined, with prices dropping below $40,000 to a low of $38,521. The crypto fear and greed index also shifted from extreme greed to a neutral sentiment.
Bitcoin and Ethereum Options Expiry
A total of 93,588 BTC options with a notional value of $3.7 billion will expire on January 26, with a put-call ratio of 0.52. The max pain point is $41,000, indicating selling pressure among traders. Expect significant volatility as BTC is currently trading below the max pain price at $40,059.
Additionally, 929,432 ETH options worth $2 billion are set to expire, with a put-call ratio of 0.31. The max pain point is $2,300, higher than the current price of $2,220. Traders may anticipate a recovery above the max pain point but should consider other factors that could lead to sudden price changes.
Macro Trend On The Mark
The next few days are crucial for crypto and stock markets as several macro data releases are expected to impact the U.S. Federal Reserve’s interest rate decision on January 31. The U.S. GDP growth in Q4 slowed to 2%, the lowest in six quarters, indicating the impact of the Fed’s tightening campaign on the economy. However, a tight labor market continues to support consumer spending.
The market is also awaiting Friday’s U.S. PCE inflation data, which is the central bank’s preferred inflation gauge. It is expected that the annual core PCE will drop to 3% from 3.2%. Traders are closely monitoring key economic data to assess performance.
Hot Take: Volatility Ahead for Bitcoin and Ethereum
With the expiry of Bitcoin and Ethereum options, expect increased volatility in the crypto market. Traders should be prepared for swift changes in sentiment and significant price fluctuations. Keep an eye on the max pain points and consider other market factors that could impact prices. Additionally, pay attention to macro trends and economic data releases that may influence investor decisions and market movements.
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