© Reuters. 46,000 BTC Option Expiring Soon Causes Put Call Ratio 1.11: GreeksLive
- 46,000 BTC options and 288,000 ETH options are set to expire soon, which could affect market prices.
- The analytics platform shows that the ‘Call Ratios’ position indicates a slight bearish trend among investors.
- The biggest pain points for BTC and ETH are $23,000 and $1,550, respectively, with large nominal values.
Option trader data platform GreeksLive tweeted on March 17 that the cryptocurrency market is currently experiencing an important event as 46,000 Bitcoin options and 288,000 Ethereum options are set to expire soon.
46,000 BTC options about to expire with a buy-ask ratio of 1.11, a maximum pain point of $23,000 and a notional value of $1.18 billion, and 288,000 ETH options about to expire with a buy-off ratio of 1.12, a maximum pain point of 1,550 dollars and a hypothetical value of $490 million. pic.twitter.com/35dp0EqlsL
– Greeks.live (@GreeksLive) March 17, 2023
These expiry times are likely to affect the market price of each of the cryptocurrencies and may lead to increased volatility.
According to GreeksLive, the buy-hold ratio, a key metric used to assess market sentiment, indicates that the market is currently slightly bearish for Bitcoin by 1.11 and for Ethereum by 1.12. This indicates that investors are more likely to buy call options, which offer downside protection, rather than call options, which provide potential upside.
The biggest sore point, or the strike price at which the largest number of options are held, for Bitcoin is $23,000 while for Ethereum it is $1,550. This means that if the market price of any of the cryptocurrencies falls below these levels, a large number of investors who hold these options may experience losses.
Moreover, the face value of the expiring Bitcoin options is estimated at $1.18 billion, while the face value of the Ethereum options is estimated at $490 million. This represents a large amount of capital that can be affected by market movements.
Recently, the cryptocurrency market has been experiencing increased volatility with Bitcoin weekly positions doubling and the proportion of bearish positions increasing exponentially. This indicates that there is increasing uncertainty in the market, and investors are taking positions that protect them from potential downside risks.
Meanwhile, bitcoin price rose above $26,000 in response to a very bullish macro environment, and if this trend continues, there could be a bullish weekend ahead.
The US Federal Reserve added an unprecedented $300 billion in assets to its portfolio in a week, reversing quantitative tightening. This, along with lower bond yields and the consumer price index, led to a shift in the expected interest rate and pace of increases, from tightening to easing.
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