Bitcoin fell below $60,000 in the declines that started in April. While the BTC price dropped to $56,000, it later recovered and approached $60,000.
Now, while a rise is expected in BTC and altcoins, eyes are turned to Bitcoin and Ethereum options that will expire today.
According to the news of Singapore-based crypto options data platform Greeks.live, 23,000 BTC and 330,000 ETH options will expire on May 3.
Accordingly, while the Put/Call Ratio of BTC options is 0.49, the maximum loss point is $61,000 and the notional value is $1.4 billion.
Looking at Ethereum, ETH options have a Put/Call Ratio of 0.36, a maximum loss point of $3,000, and a notional value of $1 billion.
Stating that Bitcoin continued to fall after its ATH in March, Greeks.live said that the failure of Hong Kong ETFs to meet expectations and the continuation of outflows in spot ETFs in the USA were effective in this decline.
“The crypto market continued to decline this week, with BTC falling to a new low since March.
This decline was due to the failure of Hong Kong ETFs to achieve the expected volume increase and the continuation of outflows in US BTC ETFs. These led to a weakening of market confidence.
However, sustained horizontal movements are unlikely to last long. And without the necessary catalysts for recovery, a downward slide is inevitable.”
What Does the Put/Call Ratio Indicate for Bitcoin and Ethereum?
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 0.49; For Ethereum it appears as 0.36. Accordingly, although these rates indicate an upward trend for BTC and ETH, they alone will not be sufficient data for an increase or decrease.
Time will tell how these rates, along with other data and signals, will affect prices. At this point, do not make your investment decisions based on a single data or report.
*This is not investment advice.