The world's largest cryptocurrency Bitcoin (BTC) made a strong comeback to the $43,000 level after the FOMC meeting as the US Federal Reserve announced three interest rate cuts for next 2024.
Bitcoin options expiration dates
Here's a look at Bitcoin options data and what it says about the future Bitcoin price.
BTC options:
- Number of options: 37,000 BTC options expire.
- Put-call ratio: The put-call ratio is 1.02, indicating that there are slightly more put options (bearish bets) than call options (bullish bets).
- Maxpain point: The Maxpain point is $42,000. Maxpain is the price at which the option value would be lost the least. In this context, it suggests that $42,000 is a level at which most options would expire worthless, which benefits options writers.
- Nominal value: The total notional value of these options is $1.58 billion.
The data suggests that there has been a significant increase in protection options trading given the recent crypto market decline, particularly BTC's decline to $40,000. Protective options, such as put options, act as a hedge against possible price declines. The fact that the put-call ratio for BTC is greater than 1 suggests a more bearish sentiment in the options market for Bitcoin.
Courtesy of Greeks.Live
Despite the overall market decline, the focus in the options market remains on BTC as a significant number of options are set to expire. Implied Volatility (IV) has been relatively stable for about a month, indicating that the market does not expect significant price fluctuations in the near term. The mention of “major options moves still underway” suggests ongoing adjustments and positioning in the options market, perhaps in response to market developments or new information.
BTC inflows are exploding
Bitcoin and Ethereum saw massive inflows within 24 hours of the conclusion of the FOMC meeting on Wednesday. According to well-known crypto analyst Ali Martinez, these inflows amounted to $20 billion. The last time such massive inflows occurred in December 2020, BTC price rose from $18,000 to $65,000!
In the short term, the price of Bitcoin (BTC) is fluctuating in the range of $39,575 and $44,800. Both bullish attempts to break the ceiling and bearish attempts to lower it to the support level faced resistance.
The Bitcoin price forecast is for it to continue to fluctuate between $43,500 and $41,700 over the next few days, awaiting a bullish breakout above the yearly high of $44,800. To confirm an uptrend, the price must necessarily maintain a level above $42,510 by the end of the day; Otherwise, the bears are likely to increase their influence. Banking giant Goldman Sachs also expects BTC prices to rise to $100,000 by 2024.
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