Crypto markets hit a pivotal moment today as approximately $1.96 billion worth of Bitcoin (BTC) and Ethereum (ETH) options were set to expire.
The event attracted widespread attention from traders and investors because options expiration is often associated with large moves in market prices.
Cryptocurrency options expiration imminent, historical trend could rebound
With today’s expiration of Bitcoin and Ethereum options, market analysts are predicting a possible rebound based on historical trends. Today’s Bitcoin options have a notional value of $1.27 billion, with 19,712 contracts involved, showing a put/call ratio of 0.46, while identifying a maximum pain point price of $66,500.
This maximum pain point price is the Bitcoin price point at which option holders could suffer the greatest collective loss, while the put/call ratio shows that buying activity for call options in the market is more active than for put options.
On the other hand, for Ethereum, there are 197,068 contracts expiring with a notional value of $693.37 million, the put/call ratio for these contracts is 0.30 and its maximum pain point is $3,500. $ETH
In options trading, there has been an increase in volume for forward options, especially for large call options, which may indicate market optimism about future prices.
Despite the high realized volatility (RV), the stability of implied volatility (IV) suggests that the market does not expect sharp moves before the quarterly delivery.
Greeks.Live analysts have observed that the options market is seeing an increase in trading activity for forward options, especially in the trading of a large number of call options. Although the market's realized volatility (RV) is currently high, the implied volatility (IV) remains at a stable level. This situation suggests that no major market fluctuations are expected before the quarterly delivery.
Greeks.Live analysts analyzed the current trends in the cryptocurrency market, noting that the second quarter of this year was weaker, which is consistent with historical experience. They also mentioned that the third quarter tends to be tough, but there is usually a rebound at the end of the quarter.
In this week's market performance, Bitcoin's price range is between $64,258 and $66,782, while Ethereum's trading range is between $3,387 and $3,632. As of this writing, Bitcoin is trading at $64,046, down 3.8% over the past seven days; Ethereum is trading at $3,510, down 3.36% over the same period. $BTC
Analysts also mentioned that although option expiration may cause short-term market volatility, historical patterns show that such events tend to stabilize the market. They stressed that traders should consider these historical trends when developing trading strategies. But ultimately, traders need to remain vigilant and pay close attention to technical indicators and market sentiment in order to effectively respond to the expected market volatility that option expiration may bring. #加密货币 #比特币 #以太坊 #期权到期
Conclusion
Today's massive Bitcoin and Ethereum options expiration has become the focus of the market, triggering expectations of potential price fluctuations. Despite the uncertainty facing the market, historical data and options indicators suggest the possibility of market stability and rebound. Analysts remind traders to consider long-term trends and remain vigilant after option expiration, using market indicators to navigate.
As options expire, traders should be prepared for short-term market volatility and use technical analysis and market sentiment to optimize trading strategies. In the long run, a deep understanding of such events and timely responses will be the key to achieving market success.
