Bitcoin
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Options trading data processing platform GreeksLive tweeted (social network banned in Russia) that the cryptocurrency market is in for a big event as 46,000 bitcoin options and 288,000 ether options are about to expire.
Options expiration can affect the market price of both cryptocurrencies and lead to increased volatility.
According to GreeksLive, the ratio of puts to calls, a key ratio used to measure market sentiment, indicates that the market is currently slightly bearish. The above ratio for BTC options is 1.11, for ETH it is 1.12. This suggests that investors are more likely to buy put options, which provide loss protection, rather than call options, which reflect upside potential.
The exercise price, or strike price at which the most options are held, is $23,000 for Bitcoin and $1,550 for Ether. This means that if the market price of any of these cryptocurrencies falls below these levels, a significant number of investors holding these options may incur losses.
At the same time, the expiring bitcoin options have a face value of $1.18 billion, and the face value of ether options is $490 million. This represents a significant amount of capital that could potentially be affected by market movements.
In a week, the US Federal Reserve increased its balance sheet by an unprecedented $300 billion by suspending its quantitative tightening program. This, combined with the fall in bond yields and the consumer price index, indicates a possible decrease in the rate of interest rate growth in the future and a bullish trend in the crypto market.
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