Today marked the expiration of Bitcoin and Ethereum options totaling a substantial $2.6 billion in notional value, coinciding with a broader market downturn.
Greeks.live reported that 25,000 BTC options expired, revealing a Put Call Ratio of 0.56. This ratio, indicating a higher interest in call options than puts, hinted at optimism among a portion of investors. The Max Pain point was identified at $67,000, with a notional value of $1.7 billion. Similarly, 250,000 ETH options expired, featuring a Put Call Ratio of 0.51 and a Max Pain point of $3,500, totaling a notional value of $890 million. The Max Pain point signifies the strike price at which most options would expire worthless, often serving as a pivotal point for the market.
The crypto market underwent a notable shift, diverging from the anticipated rally of the previous week. Bitcoin’s failure to maintain levels above $70,000 prompted a retreat, challenging earlier expectations of a sustained upward trend.
This week, there was a notable uptick in put demand alongside a significant rise in implied volatility across various durations. Contrary to predictions, many put positions closed profitably, indicating a strategic departure by investors.
Bitcoin’s current price hovers just below $63,000, reflecting a 6% decline today. This price movement aligns with a record outflow of $742 million from Bitcoin ETFs over the week, highlighting investor caution and a shift in market sentiment.
As prices approach the Max Pain points, the once-dominant FOMO (Fear of Missing Out) sentiment has waned, signaling a more measured approach by market participants.
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