While there is end-of-2023 excitement in Bitcoin and altcoins, the last three-month options of 2023 in BTC will expire tomorrow.
BTC continues to hold above $40,000 with a short time until options expiry.
At this point, options worth $7.7 billion in Bitcoin and $3.5 billion in Ethereum on the cryptocurrency exchange Deribit will expire tomorrow.
Speaking to Coindesk, Deribit chief commercial officer Luuk Strijers said: “The total of over $11 billion worth of options in BTC and ETH marks Deribit's largest expiration yet. After expiration, all eyes and trading activity will be on the upcoming spot Btcoin.” “He will focus on the ETF decision.” said.
Accordingly, while the Put/Call Ratio of BTC options was 0.66, the maximum loss point was seen to be $33,000.
When we look at Ethereum, it was seen that while the Put/Call Ratio of ETH options was 0.50, the maximum loss point was $1,900.
Evaluating maximum loss point levels (MPP), market analyst Chang said he expects prices to remain stable before option expiration on Friday:
“The BTC MPP level is around $33,000 and the ETH MPP level is around $1,900.
Current BTC is far from ETH prices. MPP may provide significant points from time to time, but for now we expect BTC and ETH to move very little towards MPP levels.
“You don't have to worry too much about MPP levels.”
Finally, when we look at the Put/call ratio, it 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 0.66; For Ethereum it appears as 0.50. Accordingly, although these rates indicate an upward trend for BTC and ETH, time will tell how these rates will affect the prices along with other data and signals.
*This is not investment advice.