There is a possibility that the present positive trend in the cryptocurrency market could run into a hurdle due to the fact that over $7.7 billion worth of Bitcoin and Ethereum options are about to expire. As a result of the extreme volatility that has been observed during the early trading sessions in India, this option’s expiration has already raised concerns.
There are now a total of 89,005 Bitcoin (BTC) options available, with 54,090 of them being Call options and 34,915 falling into the Put option category. Recently, the entire notional value of the Bitcoin options market has been estimated to be somewhere about $5.82 million. Given that Bitcoin’s maximum pain price is $59,000, it is quite possible that there will be more price changes throughout trading hours in the United States.
The same is true for Ethereum (ETH) options, which have a notional value of $1.91 billion and are poised to have a major expiry on September 27th. These options are going to expire. While the put/call ratio is presently at 0.46, the total open interest in ETH options is currently at 716,917, and the maximum pain price has been set at $2,550. This is despite the fact that the ratio has been established.
The aggregate notional value for the expiry of these important assets is higher than $7.7 billion, making this one of the highest totals that has been seen in recent months. This is one of the most significant totals that has been seen.
Bitcoin and the cryptocurrency market as a whole experienced a significant increase as a direct result of the Federal Reserve of the United States’ decision to reduce interest rates in accordance with recent market conditions. Since the announcement, the price of Bitcoin has increased by more than nine percent, reaching a new high of almost sixty-five thousand dollars.
There is a potential that the expiration of options as soon as possible might result in substantial volatility in the values of Bitcoin and Ethereum, which would most likely cause them to develop to their maximum possible degrees of pain. This would be the case if the options were to expire as soon as feasible. It is possible for market players to attempt to manipulate prices in order to either minimize losses or maximize gains. This is due to the fact that there are a considerable number of options that are about to expire. Any one of these reasons might be the rationale for doing this.
On top of that, as the weekend draws nearer, the market recovery may become more difficult, which might result in more downward moves in the event that a rapid sell-off takes place. For this reason, it is essential to keep a close eye on the market. The reaction of the market to this high-stakes event that involves billions of dollars is currently the center of everyone’s attention. This is because the event involves massive amounts of money.
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