A recent report has revealed an upcoming major event that will cause the expiration of a significant amount of money Bitcoin (BTC) and Ethereum (ETH) options contracts.
Bitcoin and Ethereum options contract expires
The global options trading service platform Greeks.live moved to X (formerly Twitter). part data on the expiration of the crypto assets.
According to the platform, approximately 37,000 BTC options with a notional value of $1.58 billion will expire. In addition, Bitcoin’s current put-call ratio is at 1.02 with a “Maxpain” point of $42,000.
Meanwhile, data for Ethereum shows that approximately 268,000 options worth $610 million are set to expire soon. In addition, the current put-call ratio for ETH are at 0.66, with a “maxpain” point of $2,250. The message read:
December 15 Option data. 37,000 BTC options are about to expire with a Put Call Ratio of 1.02, a Maxpain point of $42,000 and a notional value of $1.58 billion. 268,000 ETH options expire with a Put Call Ratio of 0.66, a Maxpain point of $2,250 and a notional value of $610 million.
In particular, the put-call ratio, to put it simply, contrasts with the trading volume of put and call options. A ratio higher than 1 means a greater number of put (sell) than call (buy) options, implying a negative outlook for traders.
Furthermore, the price at which the highest number of options would expire worthless is known as the maximum pain point (Maxpain).
Greeks.live claimed that the market fell this week, with BTC falling almost $40,000 at one point. As a result, many have hedged their positions, leading to a higher proportion of Put than Call positions this week. TMost of the trading is still concentrated on Bitcoin options despite the drop.
The platform also emphasized that the Implied Volatility (IV) has been pretty flat for about a month now. Moreover, significant options moves are still underway.
The crypto assets will see substantial inflows
Cryptocurrency analyst Ali recently did just that revealed that billions in inflows will be poured into Bitcoin Ethereum. The analyst shared this crucial information with the crypto community in an X-post on Thursday, December 14.
According to Ali, more than $19.7 billion is about to flow to the two major players in the cryptocurrency market. He also added that these capital inflows are similar to what we observed in December 2020.
The X message was accompanied by a graph with a virtual explanation of a similar scenario. Ali further highlighted that after the scenario, the price of BTC increased from $18,000 to $65,000.
With billions of dollars flowing into the two major cryptocurrencies, the market may be primed for further gains.
Featured image from iStock, chart from Tradingview.com
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