Friday marks another Bitcoin options expiration day, when 37,000 contracts with a total face value of $1.58 billion will expire. As crypto markets recover from recent volatility, investors are looking at the potential impact of this event on Bitcoin and Ethereum prices.
Expiration date for Bitcoin options
The face value of options expiring today is $1.58 billion and the put/call ratio is 1.02. This indicates a balanced mix of bearish and bullish positions. The maximum pain point is $42,000, slightly lower than current spot prices. Greeks Live analysts note a large number of protective option trades resulting in larger put positions due to the recent market downturn. The low implied volatility over the past month indicates a lack of expectations for significant short-term price fluctuations.
In addition to Bitcoin, 268,000 Ethereum contracts with a face value of $610 million and a put/call ratio of 0.66 will expire. This indicates a higher call rate, indicating more bullish sentiment for Ethereum. The “maximum pain” point for ETH options is $2,250, which is closely aligned with current spot values. Total crypto market capitalization remained at $1.68 trillion, exhibiting a two-week consolidation period. Currently trading at $43,166, Bitcoin is down a modest 0.8%. Ethereum showed a small decline after remaining stable for most of the day, trading at $2,266.
Analysts’ predictions for Bitcoin price
Trader Kevin Svenson expresses bullish sentiment for Bitcoin, citing a potential confirmation of an expanding wedge formation rising on the four-hour chart. Svenson expects a significant price rally, especially towards Christmas or New Year, with positive market news and increasing optimism. Macro investor and swing trader Jason Pizzino notes that upside potential is accumulating in the altcoin market amid Bitcoin’s extended rally. Pizzino predicts a pullback in Bitcoin, highlighting the importance of market sentiment indicators, including the Fear and Greed Index, which point to a potential shift towards more fear in the market.
Bitcoin made a strong return to $43,000 levels after the FOMC meeting, after the US Federal Reserve announced that it would make three interest rate cuts in 2024. Options data reveals insights into current market sentiment, with a focus on protective options amid the recent crypto market downturn. As $1.58 billion worth of Bitcoin options expire, the market awaits the potential impact on prices. Analysts’ perspectives vary. Some predict a continuation of the rise, while others expect a pullback. While the options market is taking a cautious approach to potential price fluctuations, the general mood is cautiously optimistic. Traders and investors are advised to remain vigilant in these dynamic market conditions.
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