The leading cryptocurrency Bitcoin (BTC)$BTC
, continues to trade within a certain price range after the correction process it went through.
As investors eagerly await Bitcoin to approach $100,000, today, as every Friday, the expiration date for options contracts in the crypto market has come. This week, as the last Friday of November, options contracts are even more important. Because investors are eagerly waiting to see if there will be a big move towards $100,000 after the decline. So, how could the expiration of options contracts at the end of November affect the cryptocurrency market?
On November 29, 98,000 Bitcoin and 412,000 Ethereum options will expire on the Deribit derivatives exchange, according to data from Singapore-based crypto options data platform Greeks.live.
While the Put/Call ratio of BTC options is 0.84, the maximum loss point is set at $80,000 and the total notional value is $9.48 billion. On the Ethereum side, the Put/Call ratio of ETH options is 0.75, the maximum loss point is $2,900 and the notional value is $1.47 billion.
According to this data, it is noted that there are more call options than put options and that there is an optimistic atmosphere in the markets. Analysts predict that volatility may increase after the November BTC and ETH option expiration, especially on weekends due to low trading volume.
Greeks.live analysts stated that Bitcoin was prevented from exceeding $ 100,000 this week and Ethereum led the market. Investors shared that there was an 11% pullback in Bitcoin and that many investors recently thought that the market was coming to an end. However, they emphasized that the same people were waiting for a pullback to buy only 10 days ago.
While volatility is expected to increase after Bitcoin’s monthly expiration, according to Coinglass data, if the Bitcoin price falls below $94,000, $1.05 billion worth of long positions are expected to be liquidated. On the other hand, if Bitcoin rises above $97,000, $811 million worth of BTC short positions on CEX exchanges will be liquidated.
The put/call ratio is calculated by dividing the number of put options by the number of call options. A ratio below 1 indicates that there are more call options than put options, indicating an upward trend. A ratio above 1 indicates that there are more put options than calls, indicating a downward trend. Ratios close to 1 indicate that the market is in balance.
For Bitcoin, this ratio is 0.84, and for Ethereum, it is 0.75. While these ratios indicate an upward trend for BTC and ETH, time will tell how price movements will take shape. At this point, it is reminded that investors should not make their decisions based on only one data or report.