Expiring Bitcoin and Ethereum Options!

The crypto market is gearing up for potential volatility in recent times. At present we can see the price of Bitcoin falling quite a bit. Considering that the crypto market is gearing up for a possible volatility in recent times. The reasoning behind this is that $2.06 billion worth of Bitcoin and Ethereum options expired yesterday. Which is a huge amount and we can see huge fluctuations in the price of BTC and Ether as a result. A veritable wave of expiring bitcoin and ethereum options has caused a stir in the crypto market, with huge amounts of $2 billion worth of Bitcoin and Ethereum options expiring. According to the data, about 20,276 bitcoin options contracts represent $1.35 billion, with a maximum strike price of $68,500.

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But at the same time, this is what is happening with Ethereum. However, such incidents cannot be called coincidence. As for Ethereum, around $709.76 million worth of around 201,647 Ethereum contracts, with a maximum strike price of $3,600, are expiring at such a time. As a result we will see a massive volatility in the market. But this period is very important for traders because this period is not expected to be long term but this period may be short term. So those who are investors must be smart and therefore patient and must be alert in this regard.

Because the current put/call ratio, the indicator that measures the balance between outstanding call and put options, is typically 0.49 for Bitcoin and 0.36 for Ethereum. Since they are below 1, these levels suggest the dominance of long positions over short positions. So it is expected that although it may occur but it may not be permanent but may be temporary. But the glimmer of hope is that a closer look at this level is a potential bullish signal. Therefore, this timing is very important for investors because the expiration of such huge options usually results in market volatility, at least in the short term.

Although currently the price of Bitcoin and Ethium is very low. Considering that much is currently in place, the underlying volatility of Bitcoin and Ethereum is currently at a relatively low level. Due to the low price of these two popular coins, it offers buyers a high cost-effectiveness ratio. As these are at low price level we need to wait and since there is a possibility of approval of Ethereum Spot ETF next month, we should plan ahead to buy next month options. However, coming to the present time, we can see that the price of Bitcoin and Ethereum has fallen before the end of this big period. However, this is a time when it would be wise to be alert and watchful and take advantage of opportunities.