After reaching $73,000 in recent weeks, Bitcoin, the leading cryptocurrency, encountered strong selling pressure and fell to $60,000 with the correction it experienced.
While BTC fluctuated within a certain range after this decline, this correction in Bitcoin was also effective in altcoins, especially Ethereum. Now, while investors are waiting for the rise in BTC and altcoins, all 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, 25,000 BTC and 250,000 ETH options will expire on March 22.
Accordingly, while the Put/Call Ratio of BTC options is 0.56, the maximum loss point is $67,000 and the notional value is $1.7 billion.
Looking at Ethereum, ETH options have a Put/Call Ratio of 0.51, a maximum loss point of $3,500, and a notional value of $890 million.
Stating that the situation in the Bitcoin and cryptocurrency market has changed this week and the sales demand has increased, Greeks.live said:
“The crypto market has changed pace this week, last week it was said that the weekend was the last window for a rally and if the Bitcoin price failed to hold $70,000 the current massive rally would be derailed and this week has indeed seen a deep decline.
Selling demand increased this week and as a result, put positions decreased and many sell positions were closed with a profit this week.
“A few weeks later, delivery prices approached the Maxpain point once again and the FOMO sentiment in the market was largely eliminated.”
Although Greeks.live says that FOMO in the market has largely disappeared, it is considered that the increase in demand for put positions has increased speculation that the correction will continue.
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 0.56; For Ethereum it appears as 0.51. 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.
22 March Options Data
25,000 BTC options expired with a Put Call Ratio of 0.56, a Maxpain point of $67,000 and a notional value of $1.7 billion.
250,000 ETH options expired with a Put Call Ratio of 0.51, a Maxpain point of $3,500 and a notional value of $890 million.
The crypto… pic.twitter.com/kIumwUWR3J— Greeks.live (@GreeksLive) March 22, 2024
*This is not investment advice.
