While the leading cryptocurrency Bitcoin rose above $ 44,000 again, all eyes turned to Bitcoin and Ethereum options that will expire today.
According to the news of Singapore-based crypto options data platform Greeks.live, 25,000 BTC and 217,000 ETH options will expire.
Accordingly, while the Put/Call Ratio of BTC options is 0.70, the maximum loss point is $42,000 and the notional value is $1.11 billion.
Looking at Ethereum, ETH options have a Put/Call Ratio of 0.60, a maximum loss point of $2,200, and a notional value of $490 million.
Stating that current signals point to a potential collapse, Greeks.live said:
“With cryptocurrencies pushing higher this week, the BRC market holding on, lending rates continuing to rise, a large number of protective put options being traded, all signals point to the risk of a potential crash.
“When we look at the option data, we see that option positions have shifted to next year's maturities on a larger scale, especially due to the potential expectations of ETFs, positions are higher in January than in previous years, and large-scale changes are still continuing.”
The put/call ratio is calculated by dividing the number of put options by the number of call options. A ratio below 1 means there are more purchases than puts, indicating an upward trend.
A ratio above 1 means there are more put options than call options, indicating a bearish trend. A ratio close to 1 means the market is balanced or neutral.
For Bitcoin, this rate is 0.70; For Ethereum it appears as 0.60. Accordingly, although these rates are closer to the 1 level, they indicate an upward trend for BTC and ETH. However, time will tell how these rates, along with other data and signals, will affect prices.
*This is not investment advice.