Bitcoin (BTC) is entering 2024 with a strong rise that began under the influence of Donald Trump. Bitcoin broke records throughout the year, exceeding $100,000 for the first time in its history. However, Bitcoin and the cryptocurrency market, which have been showing volatile movements recently, are facing a historic option expiration as the last days of 2024 approach.
Today, as every Friday, the expiration date for options contracts in the crypto market has come. However, this expiration date is even more important because it is the last Friday of December, the last quarter, and the year 2024. According to Deribit data, a total of $18 billion worth of Bitcoin and Ethereum was traded today$ETH
the option contract will expire.
Accordingly, while the Put/Call ratio of Bitcoin options is 0.69, the maximum loss point is $85,000 and the notional value is $14.38 billion. For Ethereum, the options have a Put/Call ratio of 0.41, the maximum loss point is $3,000 and the notional value is calculated as $3.7 billion.
Deribit CEO Luuk Strijers made the following assessment:
“The previously dominant bullish momentum in Bitcoin has stalled and the market has become highly leveraged. This could increase the risk of a rapidly expanding snowball effect if a significant decline occurs. All eyes are on this deadline because it has the potential to determine where Bitcoin will trend at the start of the new year.”
The Put/Call ratio is calculated by dividing the number of put options by the number of call options. If the ratio is below 1, it means that there are more call options than put options, indicating an upward trend. When the ratio is above 1, there are more put options, indicating a downward trend. A ratio close to 1 indicates that the market is balanced or neutral.
This ratio was recorded as 0.69 for Bitcoin and 0.41 for Ethereum. Theoretically, these ratios show that BTC and ETH are on an upward trend. However, it will be possible to see the effect of these ratios on the price over time. At this point, it is important that you do not make your investment decisions based on only one data or report.