Today, Bitcoin and Ethereum (ETH) options expire for about $ 2.09 billion.
We understand how the expiration of options will affect the short -term price dynamics of the two largest cryptocurrencies in capitalization.
Analysis of the expirations of Bitcoin and Ethereum options today
According to Deribit, today 21,596 optional contracts for bitcoin expire for a total of $ 1.8 billion. The maximum pain point for them is $ 85,000, and the ratio of the Put and Collus is 0.83.
In addition to BTC options, the expiration of 133,447 contracts on Ethereum will also take place today. The maximum pain point on these contracts is at $ 2,000, and the ratio of the Put and Collus is 0.62.
In the trade in options, the point of maximum pain means the level of price at which cryptocurrency holders will incur the greatest losses. The ratio of Put and Call evaluates what moods prevail among investors. The indicator below 1 suggests that the market participants are generally optimistic.
According to the theory on the maximum pain points in the options trading, cryptocurrencies often strive for their aspects in which the largest number of contracts (both calls and the Putes) expires without execution.
According to CoinmarketCap, at the time of writing the material, bitcoin is traded at $ 84,414, and Ethereum is $ 1,977.
What is happening on the market
In anticipation of the expiration of options, Greeks.live analysts shared observations of current market moods. They emphasized the disagreement among traders. Some investors expect that after a meeting of the US Federal Reserve (Fed), cryptocurrency quotes will fall, as regulators are not going to reduce interest rates.
Others put on temporary growth before a period of increased volatility against the background of Trump’s trade wars and possible purchases of bitcoin by Strategy (formerly Microstrategy). As a zone of interest, analysts call the range between $ 83,000 and $ 85,000.
In any case, today the traders should be prepared for short -term fluctuations. The expiration of the period of optional contracts for cryptocurrency usually leads to temporary instability.
Be in the know! Subscribe to Telegram.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
