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In a recent development, Greeks.live, a prominent crypto analytics platform, tweeted concerning data regarding the impending expiration of Bitcoin (BTC) and Ethereum (ETH) options. The data revealed that a staggering $2.33 billion worth of options between BTC and ETH are set to expire, drawing significant attention from traders and investors alike.
According to Greeks.live, a total of 21,564 BTC options are nearing expiration. The data unveils a Put Call Ratio of 0.64, indicating a higher number of put options relative to call options. This suggests bearish sentiment prevailing among investors, with a Maxpain point set at $65,000. The notional value of these expiring BTC options stands at an impressive $1.4 billion.
On the Ethereum front, 298,415 ETH options are slated to expire. The data displays a Put Call Ratio of 0.42, with put options also outnumbering call options, pointing to a bearish outlook. The Maxpain point for these expiring ETH options is reported to be $3,125, and the total notional value is valued at $930 million.
Market performance and sentiment
The crypto market witnessed a significant pullback earlier this week, with both Bitcoin and Ethereum experiencing declines. The Bitcoin price slipped toward the $60,000 mark, while Ethereum fell toward $3,000. This downturn led to shorts registering their most significant and sustained gains of the year.
One of the contributing factors to this downturn is the sharp decline in Implied Volatilities (IVs) across major terms. This decline can be attributed primarily to a substantial drop in call option prices. The market's anticipation for Saturday's Bitcoin halving had previously buoyed prices. However, it seems that this expectation is no longer sufficient to support the market.
The prevailing sentiment on the market appears to be more subdued, particularly with the recent deceleration in spot ETF inflows. Despite a minor crypto rally today, the actions of major market whales continue to signal a lack of confidence. Bulls are now looking for additional inflows to bolster market support post-halving.
Denys Serhiichuk
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov