While the expectation of an increase in the leading cryptocurrency Bitcoin (BTC) in 2025 continues, the expiration date for option contracts in the crypto market has come today, as every Friday.
These options expire on the first Friday of 2025.
According to the news of Singapore-based crypto options data platform Greeks.live, 20,000 Bitcoin and 206,000 Ethereum options will expire on January 3 on the Deribit derivatives exchange.
Accordingly, the Put/Call Ratio of BTC options is 0.69, the maximum loss point is $97,000 and the notional value is $1.93 billion.
When we look at Ethereum, ETH options have a Put/Call Ratio of 0.81, a maximum loss point of $3,400, and a notional value of $710 million.
“Today marks the first weekly option delivery for 2025, with a total of $2.6 billion worth of options expiring. The market is generally buoyant as European and American clients slowly begin to return from their vacations.”
Analysts said the market is optimistic about 2025, but the US stock markets have brought a lot of uncertainty in recent days and it is very likely that the Fed will not cut interest rates at this month's interest rate meeting. These are not positive for Bitcoin and cryptocurrencies in the short term, analysts added.
Analysts recently stated that Bitcoin and cryptocurrencies will rise in 2025.
What Does the Put/Call Ratio Signal 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 buys than puts, indicating an uptrend. A ratio above 1 means there are more puts than calls, indicating a downtrend. A ratio close to 1 means the market is balanced or neutral.
This ratio is 0.69 for Bitcoin; 0.81 for Ethereum. Accordingly, these ratios indicate an upward trend for BTC and ETH. However, time will tell how these ratios will affect the price. At this point, do not make your investment decisions based on a single data or report.
*This is not investment advice.
