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Leading cryptocurrency Bitcoin (BTC) has been racing from record high to record high over the past two days. At this point, BTC surged above $118,000, while Ethereum (ETH) and altcoins also experienced significant gains.
As the bullish mood in the market continues, the expiration date for option contracts in the crypto market has come today, as it does every Friday.
According to data for the second week of July, $4.3 billion worth of Bitcoin (BTC) and $710 million worth of Ethereum (ETH) options will expire on July 11 on the Deribit derivatives exchange.
Accordingly, the Put/Call Ratio of BTC options is 1.05, the maximum loss point is $108,000 and the notional value is $4.3 billion.
When we look at Ethereum, ETH options have a Put/Call Ratio of 1.11, a maximum loss point of $2,600, and a notional value of $710 million.
The maximum pain point is the level at which the cryptocurrency price settles at a certain value as an option approaches its expiration date, resulting in significant losses for the largest number of option traders.
At this point, significant volatility could be seen in Bitcoin’s price following the $4.3 billion options expiration on July 11th. While the maximum pain point is at $108,000 for BTC and $2,600 for Ethereum, investors could push prices to this level through market manipulation, as market prices are above the maximum pain point.
Greeks.live analysts stated that the rise in Bitcoin and Ethereum in a short period of time points to a major bull market.
Analysts said that with such a large short-term rally, the options market is still far from FOMO and institutional investors are hesitant to buy and consider the reality of the rally.
“The smell of a major bull market, with Bitcoin reaching a new all-time high and Ethereum briefly returning to the crucial $3,000 mark, is a rare improvement in market sentiment.
Despite this rally, the options market is far from FOMO and institutional investors are quite hesitant.
*This is not investment advice.
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