Today, nearly 41,000 Bitcoin options and 240,000 Ethereum options will expire, with maximum pain prices of 114,000 USD and 2,950 USD respectively.
The aggregated nominal value of BTC and ETH options reaches nearly 6 billion USD, equivalent to over 10% of current positions, reflecting an increasingly optimistic sentiment in the cryptocurrency market, boosting the recovery of the altcoin market alongside active options trading figures.
MAIN CONTENT
Nearly 41,000 Bitcoin options with a total value of nearly 5 billion USD will expire today.
240,000 Ethereum options are expiring, with a maximum pain price set at 2,950 USD for ETH.
Positive market sentiment, ETH drives recovery in altcoins, Bitcoin maintains historical highs.
How do today's Bitcoin and Ethereum options expirations affect the market?
Official data shows that the amount of Bitcoin (BTC) and Ethereum (ETH) options nearing expiration is extremely high, creating pressure and opportunities for volatility in the cryptocurrency market. According to [email protected], 41,000 BTC options are set to expire at a maximum pain price of 114,000 USD, with a nominal value of 4.93 billion USD. Meanwhile, over 240,000 ETH options will expire at a maximum pain price of 2,950 USD, valued at 880 million USD.
This scale accounts for over 10% of the total current positions, creating a significant effect that drives investors to be more active in the options market.
Specific data on Bitcoin and Ethereum options
The Put Call Ratio (the ratio of put to call options) of BTC is 0.78, indicating that the dominating sentiment is bullish options, supporting the bull side. In contrast, the ratio of 1.0 for ETH reflects a balance between put and call options, while also indicating pressure from volatility. This leads to a positive sentiment in the cryptocurrency market.
The options expiration with the maximum loss price is seen as the key point causing the market to react strongly. “We observe a decrease in selling pressure, helping BTC and ETH maintain their recovery momentum in July,” said Mr. Nguyen Tan Thanh, Director of Market Analysis at CryptoInsights, on July 20, 2024.
Nguyen Tan Thanh – Director of Market Analysis, CryptoInsights, 2024
Why is market sentiment in the cryptocurrency sector turning positive?
The expiration of ETH and BTC options in the context of prices holding at historical highs and a balanced Put Call Ratio has contributed to increasing investor confidence. ETH leads the recovery of the altcoin market based on technical momentum and new investment demand, while attracting capital flows into options in a bullish direction.
The impact of options on FOMO and liquidity
This week's data shows that the total options expiring is nearly 6 billion USD, accounting for over 10% of total positions, stimulating increased trading activity and providing ample liquidity for the market. The FOMO sentiment among options traders is rapidly increasing, leading to expanded price ranges and more vibrant volatility.
“This week's options expiration is the driving force behind market momentum, while increasing liquidity helps maintain the current upward trend,” said Mr. Le Minh Nhat, CEO of MarketWise, speaking on July 19, 2024.
Le Minh Nhat – CEO MarketWise, 2024
What factors lead to the maximum pain price of BTC and ETH?
Max Pain price is the price at which investors holding options incur the largest losses upon expiration. With BTC at 114,000 USD and ETH at 2,950 USD, these figures reflect the most uncomfortable point for the bears but serve as a psychological support point for the market. This is an important metric for analysts to forecast upcoming volatility in the cryptocurrency options market.
The significance of the Put Call Ratio in market forecasting
A Put Call Ratio below 1 like BTC (0.78) signals optimism, as call options dominate. With ETH at 1, the balanced ratio indicates the market is likely to experience strong two-way volatility. This allows investors to adjust their strategies accordingly, taking advantage of buying opportunities or hedging risks.
Frequently Asked Questions
1. How do options expirations impact the prices of Bitcoin and Ethereum?
When options expire with substantial value, the cryptocurrency market often experiences significant volatility due to the repositioning of whales and professional investors, affecting short-term prices.
2. What is the maximum pain price and why is it important?
Max Pain price is the options price that causes the largest losses for investors. It helps predict the final price trend before options expiration and supports market sentiment analysis.
3. How does the Put Call Ratio affect the cryptocurrency market?
The Put Call Ratio measures the strength of the bearish/bullish options, helping to determine market trends and the level of optimism or pessimism among investors in the cryptocurrency options market.
4. Why do ETH options have a significant impact on the altcoin market?
ETH is a platform for developing many tokens and DeFi projects, so ETH options have a spillover effect, creating a broad recovery momentum for altcoins and the entire cryptocurrency market.
5. What should investors do when options expire with a large volume?
Investors need to monitor Max Pain prices, the Put Call Ratio, and market volatility to adjust their portfolios, manage risks appropriately, and take advantage of reasonable investment opportunities.
Source: https://tintucbitcoin.com/41-000-btc-va-240-000-eth-dao-han/
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