Cash News
Bitcoin and Ethereum options expiries unleash $1.35 billion, setting the stage for a pivotal Q4 in the crypto market amid global trends.
Data from Greeks.Live details the expiring options for Bitcoin and Ethereum, showcasing the prevailing sentiment and positioning among traders.
The expiration of 17,500 Bitcoin options reflects a complex sentiment landscape among investors. With a Put Call Ratio of 0.75 and a max pain point set at $63,000, the figures suggest a tilt toward a more protective stance among participants. Bitcoin has experienced a surge, climbing 1.39% in the past 24 hours to reach $61,167 as of press time, a movement potentially influenced by these expirations.
Meanwhile, the notional value of these options is a significant $1.07 billion. As these options expire, the attention remains on the potential shifts in strategy, particularly in response to global financial trends and the nearing U.S. elections.
Oct. 4 Options Delivery Data
17,500 BTC options expired with a Put Call Ratio of 0.75, a max pain point of $63,000 and a notional value of $1.07 billion.
119,000 ETH options expired with a Put Call Ratio of 0.68, a max pain of $2,500 and a notional value of $280 million.…— Wu Blockchain (@WuBlockchain) October 4, 2024
Bitcoin’s open interest dynamics show a lower PCR of 0.49, with 166,364 calls to 81,448 puts. As we approach another expiry date on October 25, where 21.84% of open interest is focused, market watchers anticipate potential volatility spikes. This observation aligns with the broader expectation of a year-end rally, bolstered by historical fourth-quarter performances.
Ethereum Options Signal Bullish Surge
Ethereum options, with a recent expiry involving 119,000 contracts, tell a story of burgeoning confidence. The PCR here stands at 0.68, leaning towards calls, with a max pain threshold at $2,500 and a notional value of $280 million. The substantial open interest of 1,068,323 calls compared to 535,556 puts for Ethereum reinforces a bullish outlook in contrast to Bitcoin’s cautious optimism.
This sentiment is even more pronounced for Ethereum’s upcoming major maturity at the end of December, capturing 34.68% of the total open interest. The concentration of positions around this date highlights traders’ expectations for Ethereum’s performance towards the year-end.
Market Context and Strategic Positioning
The broader market environment, marked by the surge in Chinese and Hong Kong stocks, contrasts with the relative underperformance of blockchain stocks. This discrepancy highlights the unique challenges and opportunities within the crypto market. Despite the current weaknesses, historical data suggest that the fourth quarter could present favorable conditions for building long-term positions in both Bitcoin and Ethereum.
Furthermore, with all major maturity implied volatilities (IVs) maintaining average levels from the past year and expected to hold through the U.S. election period, the coming weeks are seen as opportune for laying groundwork in anticipation of Q4 movements.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.