Bitcoin and Ethereum option contracts worth an initial $2.6bn in notional values expired today, amid a general market correction.
As per Greeks.liveA Put Call Ratio (PCR) of 0.56 was observed when the 25,000 BTC expiry options were analyzed. The Put Call Ratio indicates that there is a larger interest in calls than puts.
Max Pain was 67,000 dollars with a nominal value of $1,7 billion. Similarly, 250,000 ETH The notional value for the options was $890 million. They had a Maxpain Point of $3.500 with a put call ratio of 0.51. Max Pain is the price strike at which many options will expire worthless. This point can be considered as a market pressure.
Recent changes in the cryptocurrency market have shifted away from a rally predicted last week. Bitcoin’s The failure to keep the price above $70,00 led to a drop, contradicting previous expectations that a rally would last.
In the past week, there was a significant increase in volatility implied across the board. Contrary to expectations, however, a large number of put positions were closed in profit.
Bitcoin is currently trading at just under $63,000. This represents a 6% drop today. Price decline coincides with record-breaking outflows of $742 Million from Bitcoin ETFs Investor caution was evident and the market’s mood changed.
In the past, FOMO, or Fear of Missing out, was a common sentiment. However, as the prices have aligned closer to Maxpain, this fear has subsided, signalling a cautious market approach.
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Source: crypto.news