🚀 Netflix soars after Q4 earnings. Catch the best Big Tech plays before they report.Use free screener

Cryptocurrency market sees shift as Bitcoin and Ethereum options near expiration

EditorHari Govind
Published 15/09/2023, 10:20

BTC/USD
0.08%
ETH/USD
0.69%

The cryptocurrency market is witnessing a substantial shift in investor sentiment as a significant number of Bitcoin (BTC) and Ethereum (ETH) options approach their expiration dates. This week has seen a marked decline in BTC Call positions, while ETH Put positions have notably increased, indicating a move towards more balanced betting on volatility.

Bitcoin options worth $560 million, equivalent to 22,000 BTC with a Put-Call Ratio of 0.74 and a max pain point of $26,000, are nearing their expiration. In parallel, Ethereum options valued at $250 million, amounting to 156,000 ETH with a Put-Call Ratio of 1.09 and a max pain point of $1,650, are also on the verge of expiry. The max pain point is an essential metric suggesting the strike price at which option buyers would owe the least amount to option sellers upon expiry.

This week's trading strength has declined compared to previous periods. Market activity has been relatively calm with subdued intraday fluctuations in both BTC and ETH. The volatility was primarily noticeable on Tuesdays. This tranquility in the market is attributed to the lack of impactful news.

Bitcoin's value has rebounded from its recent low of $25,000 due to concerns related to asset liquidation pressure from FTX. Following last month's release of the Consumer Price Index (CPI) and Producer Price Index (PPI) data, Bitcoin is now trading at around $26,500.

These imminent option expirations and current market trends reflect a cautious but changing sentiment in the cryptocurrency sector. Traders are closely monitoring price movements and open interest as we move further into this week.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.

In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.