A $6 Billion Options Earthquake Will Happen in BTC and ETH Today!

While the leading cryptocurrency Bitcoin (BTC) continues to consolidate after the records it experienced last week, Ethereum (ETH) and altcoins are on the offensive.

While ETH has surged by over 20% in the last seven days, altcoins like XRP, Cardano (ADA), Dogecoin (DOGE), and Stellar (XLM) have also seen major increases.

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 third week of July, $4.95 billion worth of Bitcoin (BTC) and $880 million worth of Ethereum (ETH) options will expire on July 18 on the Deribit derivatives exchange.

Accordingly, the Put/Call Ratio of BTC options is 0.78, the maximum loss point is $114,000 and the notional value is $4.95 billion.

When we look at Ethereum, ETH options have a Put/Call Ratio of 1.04, a maximum loss point of $2,950, and a notional value of $880 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 $4.9 billion options expiration on July 18th. While the maximum pain point is at $114,000 for BTC and $2,950 for Ethereum, investors could push prices to this level through market manipulation, as market prices are above the maximum pain point.

Corporates are Coming!

Greeks.live analysts said that Ethereum has quickly taken over the bull market and market sentiment has shifted sharply to optimism.

Analysts noted that the options market is still approaching FOMO, with institutional investors losing their composure and starting to enter the market.

“Etheruem led the recovery of all altcoins, and the continued uptrend without a pullback greatly encouraged market participants and further raised their expectations.

The rate of call option (bull bet) transactions has increased in the last two weeks, while institutions are also changing their positions.”

*This is not investment advice.