Bitcoin Options Expiry
According to Greeks.Live, 36,000 Bitcoin options are about to expire with a Put Call Ratio of 0.9 and a Maxpain point at $45,000. The notional value of these options is $1.68 billion. The expiration of these options could have an impact on the Bitcoin market.
This week saw the approval of the Bitcoin Spot ETF, which was highly anticipated. However, amidst the release of fake news and breaking news, the market experienced frequent and sharp volatility. It was suggested earlier in the week that employing a LONG GAMMA strategy would be cost-effective during this period.
Leading up to the ETF approval, short-term implied volatilities (IVs) reached a peak and then declined due to market volatility falling below expectations. While the ETF is expected to bring incremental capital into the crypto market in the long term, short-term uncertainty remains. Various factors could contribute to sustained sharp volatility.
BTC Active Wallets on the Decline
Santiment, an on-chain data provider, has observed a slight decrease in active wallets on Bitcoin’s blockchain since the approval of Bitcoin ETFs. This trend suggests that some traders may be transitioning from their existing BTC wallets to embrace ETF exposure for cryptocurrency investments.
Despite the excitement surrounding the Bitcoin Spot ETF, investors are not seeing significant gains in the BTC price.
Hot Take: Uncertainty Lingers as Bitcoin Options Expire and Active Wallets Decline
The expiration of a large number of Bitcoin options and the decline in active wallets on the Bitcoin blockchain have created a sense of uncertainty in the market. Traders are closely watching how these developments will impact the price and volatility of Bitcoin. While the approval of the Bitcoin Spot ETF is expected to bring more capital into the crypto market in the long term, short-term fluctuations are still a possibility. It remains to be seen how traders will react and whether the transition to ETF exposure will continue. As the market adjusts to these changes, it is important for investors to stay informed and make strategic decisions based on the evolving landscape.
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