GreeksLive, which offers data for cryptocurrency options, posted a message on March 17. in the tweetthe cryptocurrency market currently has 46,000 bitcoin He explained that he has entered an important period as the 288.000 Ethereum options and 288,000 Ethereum options will expire soon.
46,000 BTC options are about to expire with a Put Call Ratio of 1.11, a max pain point of $23,000 and a notional value of $1.18 billion.
288,000 ETH options are about to expire, with a Put Call Ratio of 1.12, a max pain point of $1,550 and a notional value of $490 million. pic.twitter.com/35dp0EqlsLNEWS CONTINUES BELOW— Greeks.live (@GreeksLive) March 17, 2023
The expiration of these deadlines is likely to affect the market price of both cryptocurrencies, resulting in increased volatility.
An important metric used to assess market sentiment, according to GreeksLive Put Call Ratioshows that the market is currently slightly bearish for Bitcoin at 1.11 and Ethereum at 1.12. This indicates that traders are more likely to purchase put options that offer downside protection, rather than call options that offer potential upside options.
However, the most important problem is that the “exercise price”, where too many options are held, is $23,000 for Bitcoin. Ethereum It was calculated as $1,550 for This means that if the price of the two leading assets falls below these levels, there may be a big loss.
Also, the expiring Bitcoin options are estimated to have a nominal value of $1.18 billion, while Ethereum options have a nominal value of $490 million. This represents a substantial amount of capital that could potentially be affected by market movements.
Cryptocurrency The market has recently experienced a high volatility with Bitcoin weekly positions doubling and the proportion of bearish positions increasing significantly. This indicates that uncertainty in the market has increased and investors are taking positions to protect themselves from potential downside risks.
Bitcoin price climbed above $26,000 in response to the very bullish macro environment and if this trend continues, it could be bullish next weekend. The Federal Reserve reversed the quantitative tightening, adding an unprecedented $300 billion in assets to its portfolio within a week. This, combined with the decline in bond yields and the Consumer Price Index, led to a shift in the expected interest rate and rate of increase from tightening to loosening.
You can follow the current price action here.