As the cryptocurrency market anticipates the end-of-year rush, tomorrow marks a crucial milestone for Bitcoin (BTC) and Ethereum (ETH) with the expiration of options totalling $11 billion on the Deribit exchange. This significant event comprises options valued at $7.7 billion in Bitcoin and $3.5 billion in Ethereum.
Speaking to Coindesk, Luuk Strijers, Deribit’s chief commercial officer, highlighted the gravity of this expiration, labelling it as Deribit’s most substantial expiry to date. He emphasized the focus shifting post-expiry towards Bitcoin’s spot market and the highly anticipated ETF decision.
Examining the options data, the Put/Call Ratio for BTC stands at 0.66, signifying a potential downside limit of $33,000. Conversely, the Put/Call Ratio for ETH options hovers at 0.50, indicating a maximum loss point of $1,900.
Market analyst Chang discussed these maximum loss point levels (MPP), foreseeing stability in prices until the expiration. He outlined BTC’s MPP near $33,000 and ETH’s around $1,900, suggesting minimal movement towards these levels in the immediate future.
The Put/Call Ratio, calculated by comparing put options to call options, signifies market sentiment. A ratio below 1 implies a bullish trend (as seen in BTC at 0.66 and ETH at 0.50), while a ratio above 1 signifies a bearish sentiment.
Despite these ratios indicating an upward trend for BTC and ETH, the impact on prices, considering various data and signals, remains uncertain. Analysts anticipate the market to reflect the impact of these ratios in the coming days as the expiration event unfolds.
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