A substantial number of Bitcoin and Ethereum options are set to expire soon. This expiry includes 21,564 Bitcoin options with a notional value of approximately $1.4 billion. The data shows a Put Call Ratio of 0.64 and a Maxpain point of $65,000 for Bitcoin. Meanwhile, Ethereum will see 298,415 of its options expire. These options hold a notional value of $930 million, with a Put Call Ratio of 0.42 and a Maxpain point of $3,125.
Market Dynamics
This week, the crypto markets have experienced a significant downturn. Bitcoin and Ethereum prices dropped below critical thresholds of $60,000 and $3,000 respectively. This pullback marks the most substantial and prolonged set of losses for shorts within the year. Furthermore, implied volatilities (IVs) across significant terms have declined, primarily influenced by a notable decrease in call option prices. The anticipated market support from the upcoming Saturday’s halving has diminished, showing less impact than expected.
Market sentiment has become more cautious, paralleled by a recent slowdown in ETF inflows. Despite a rally observed today, the activities of major investors, referred to as ‘whales,’ suggest a persistent lack of market confidence. For a bullish recovery, increased inflows post-halving are noted as necessary, indicating that the market’s stabilization is still dependent on further financial injections.
The coming days could prove critical for setting the tone in crypto markets for the remaining part of the year.
