Today, almost $ 4.3 billion in Bitcoin (BTC) and Ethereum (ETH) will expire options, a development that could influence short -term price movements.
While it is smaller than the expiration of last week, such events often cause volatility. Time coincides with the growing optimism about a possible reduction of federal reserve rates next week.
Sponsored
Sponsored
Crypto Traders Eye $ 4.3 billion Bitcoin and Ethereum Expiration options
The detribit data showed that the bitcoin options that expire today have a notional value of $ 3.42 billion. The total open interest is 29,651 contracts, a slight fall of 30,447 last week.
Of these, 12,819 are call contracts and 16,833 are contracts. This creates a put-a-call relationship of 1.31, indicating more demand for downward protection. Such bias often reflects caution among merchants, since many are positioning for a possible short -term weakness in the price of Bitcoin.
Meanwhile, Ethereum merchants show slightly less bassist positioning compared to Bitcoin. For ETH, 93,518 call contracts versus 96,182 set contracts create a Putation ratio of 1.03.
The 189,700 combined contracts have a notional value of $ 858.2 million, marking a significant decrease of the 299,744 contracts last week.
Both Bitcoin and Ethereum remain above their respective levels of maximum pain. According to Beinypto Markets data, Bitcoin was quoted at $ 115,617, above its maximum $ 113,000 pain price. Ethereum followed a similar pattern, which is quoted at $ 4,553 against a maximum pain level of $ 4,400.
Sponsored
Sponsored
The maximum pain metric identifies the price of the price in which the largest number of expired options without value, creating the most pronounced losses for merchants. Market observers often pay close attention to this level.
Because? Because prices tend to be derived from him when the options approach expiration, a phenomenon explained by the maximum pain theory.
However, the Care Center now changes to the next Federal Reserve rate decision. Optimism has become the market, with forecasts of a possible concentration if political leaders confirm the expectations of an interest rate cut.
The Greek analysts. Live said that implicit volatility remains calm, even leaving slightly lower.
“The options market has a price in a relatively low future volatility, with a consensus in which a rate cut of 25 base points has already been factor,” the analysts wrote.
Greeks.Live noticed a strong increase in the commercial block activity, which has represented more than half of the daily volume in the last two weeks. In addition, its commercial distribution analysis indicated that most of these transactions are concentrated in the current month, since the purchase and sale occur at approximately equal levels.
“This indicates a considerable divergence of the market with respect to the second half of this month, although volatility expectations remain generally subjected,” added the post.
Finally, analysts suggested that the feeling of the market is still widely favorable for the fourth quarter.