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In a high-stakes culmination of options trading, both Bitcoin (BTC) and Ethereum (ETH) are bracing for a potentially volatile December as a staggering $1.9 billion worth of options are set to expire today. The market anticipation is palpable as traders closely monitor the unfolding dynamics, considering the broader implications for the crypto landscape.
According to data shared on X (formerly Twitter) by Greeks.live, a prominent analytics platform in the crypto space, the options landscape is painted with significant figures. Approximately 33,000 BTC options are on the cusp of expiration, carrying a Put Call Ratio of 0.84. The max pain point is identified as $40,000, with a notional value of $1.43 billion.
Simultaneously, 210,000 ETH options are nearing expiration, featuring a Put Call Ratio of 0.59, a max pain point of $2,150, and a notional value of $490 million. This imminent expiration occurs against the backdrop of a remarkable week for cryptocurrencies. BTC, in particular, led the surge by surpassing the $44,000 mark at one juncture.
However, the options data reveals an intriguing pattern, signaling a concentration of trading activities in BTC options. The short-term volume of BTC options is notably higher, indicating that the week's primary trading focus has been on Bitcoin. Moreover, the percentage of put options, typically considered bearish bets, is not negligible, suggesting nuanced market sentiment.
Spot Bitcoin ETF speculation
Greeks.live provided insights into broader market sentiment, indicating that expectations had predominantly centered around Exchange Traded Fund (ETFs) approvals for January. They mentioned that, with January positions also experiencing a substantial increase, it has not been a quiet December this year so far.
The reference to spot Bitcoin ETFs reflects the ongoing speculation and anticipation within the crypto community regarding regulatory approvals, which could potentially provide a significant boost to the market in the coming year. As reported by U.Today, the U.S. Securities and Exchange Commission (SEC) is reportedly in the final stages of deliberating the approval of Bitcoin ETFs.
This development follows extensive discussions between the SEC and prominent asset managers, with industry giants such as Grayscale Investments, BlackRock and others actively participating in these conversations. Overall, the intricate interplay of market forces and investor sentiment during this period could potentially set the tone for the closing weeks of 2023 in the ever-dynamic world of digital assets.
Dan Burgin
Alex Dovbnya