- The combined notional value of BTC and ETH options expiring is approximately $820 million.
- BTC and ETH witnessed negative funding rates below -0.1 for the first time in more than seven months.
According to data from Greeks liveover $500 million worth of Bitcoin [BTC] option contracts are about to expire. A similar situation has been observed for Ethereum [ETH]where more than $200 million in ETH option contracts will also expire.
Read Bitcoin [BTC] Price Forecast 2023-24
The data showed that about 22,000 BTC options were about to expire, with a Put Call Ratio of 0.55. Also, the maximum pain point was $29,500 and a total face value of $580 million.
In addition, approximately 144,000 ETH options reach their expiration date, with a Put Call Ratio of 0.51. The maximum pain point was $1,800 and a combined face value of $240 million.
Cryptocurrency options are financial derivative instruments that give traders the choice, but not the obligation, to buy (call option) or sell (put option) at a predetermined price (strike price) within a specified time frame (expiry date).
The put-call ratio is a measure to assess investor sentiment and predict potential shifts in market direction.
In addition, a high put-call ratio (higher than 1) indicates more open put options than open call options. This indicates bearish sentiment among investors, pointing to an expected fall in prices. Conversely, a low put-call ratio (less than 1) indicates a higher number of open call options than open put options.
This implies an optimistic sentiment among investors, anticipating a price increase. The state of Bitcoin and Ethereum showed a delicately balanced market, with a move to either side possible.
Bitcoin and Ethereum are witnessing negative funding rates
Amid the recent price drop that Bitcoin and Ethereum have experienced in recent days, their funding rates have also experienced a notable drop. According to a report by Mint glassBitcoin’s OI-weighted funding rate had fallen below -0.01%, a phenomenon not seen since March 12.
Likewise, examine the Ethereum OI-weighted funding rate revealed a drop below -0.02%. Interestingly enough, this occurrence represented the second time since March that Ethereum experienced such a drop.
At the time of writing, both cryptos were seeing positive funding rates, although Ethereum appeared to have experienced a more substantial recovery.
Analysis of BTC and ETH price trends
Bitcoin’s current adverse price trajectory was illustrated by the line of the Relative Strength Index (RSI), which had entered the oversold zone on the daily time frame. A closer examination of the chart revealed that BTC had suffered a nearly 10% loss in value over the past four days.
At the time of writing, the value had dropped to $26,000. It was also trending below its long moving average (blue line) for the first time in over seven months.
Source: TradingView
How much are 1,10,100 ETHs worth today?
In addition, Ethereum’s price movement mirrored that of BTC. At the time of writing, the RSI had also dropped into the oversold zone. This was consistent with a downward trend over the past four days.
At the time of writing, Ethereum was valued at around $1,600, showing a small increase. Notably, it had fallen below its long moving average for the first time in more than seven months.
Source: TradingView