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A recent report has revealed an upcoming significant event that will see a significant amount of data expire Bitcoin (BTC) and Ethereum (ETH) options contracts.
Bitcoin and Ethereum options contracts expire
Global options trading platform Greeks.live took part in X (formerly Twitter). share Data on the expiry of the crypto assets.
According to the platform, approximately 37,000 BTC options with a notional value of $1.58 billion are expiring. In addition, Bitcoin's current put-call ratio stands at 1.02 with a “Maxpain” point of $42,000.
Meanwhile, data for Ethereum shows that about 268,000 options worth $610 million are about to expire. In addition, the current put-call ratio for ETH are at 0.66, with a “maxpain” point of $2,250. The post read:
Dec 15 options dates. 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.
What is noteworthy is that, to put it simply, the put-call ratio compares the trading volume of put and call options. A ratio greater than 1 means a higher number of put (sell) options than call (buy) options, implying a negative outlook among traders.
BTC put positions and call positions | Source: Greeks.live on X
Additionally, the price at which most options would expire worthless is called the Maximum Pain (Maxpain) point.
Greeks.live claimed that the market saw a decline this week, with BTC falling to almost $40,000 at one point. As a result, many are hedging their positions, resulting in a greater proportion of put positions than call positions this week. TDespite the decline, the majority of trading is still focused on Bitcoin options.
The platform also emphasized that the Implied Volatility (IV) has been pretty flat for about a month. Additionally, there are still significant options moves underway.
The crypto assets will see a significant inflow
Cryptocurrency analyst Ali recently revealed that billions should flow into Bitcoin and ether. The analyst shared this important information with the crypto community in an X post on Thursday, December 14th.
$19.7 Billion BTC and ETH Inflow | Source: Ali_charts on X
According to Ali, over $19.7 billion is expected to flow into the two major players in the cryptocurrency market. He further added that this capital inflow is comparable to what we observed in December 2020.
Attached to the X post was a diagram that showed a virtual explanation of a similar scenario. Ali further highlighted that the price of BTC increased from $18,000 to $65,000 under the scenario.
With billions of dollars flowing into the two major cryptocurrencies, the market could be primed for further gains.
BTC is trading at $42,620 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from iStock, chart from Tradingview.com
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