Bitcoin, which failed to experience the expected rise in October and November, known as the bullish months, is preparing to close out its worst November in the last six years since 2019.
At this point, while the hopes for an uptrend remain in December, the expiration date for option contracts in the crypto market has arrived, as it does every Friday.
These options are more important because they fall on the last Friday of both the week and the month.
According to weekly data, approximately $15.1 billion worth of crypto options will expire on November 28 on the Deribit derivatives exchange.
According to Deribit data, $13.4 billion worth of Bitcoin (BTC) and $1.7 million worth of Ethereum (ETH) options are set to expire.
Accordingly, the Put/Call Ratio of BTC options is 0.54, the maximum loss point is $100,000 and the notional value is $13.4 billion.
When we look at Ethereum, ETH options have a Put/Call Ratio of 0.48, a maximum loss point of $3,400, and a notional value of $1.7 billion.
What Do Bitcoin and Ethereum Options Mean?
While the put/call ratio is 0.56 for Bitcoin and 0.48 for Etheruem, these ratios indicate that investors are betting for more profit and expecting a rise.
Max pain can often act as a magnet during expiration in option markets.
In the options market, maximum pain is the price level at which investors incur the greatest losses and options sellers feel most comfortable. In other words, it acts as a magnet for the market as contracts expire.
At this point, the maximum pain level for Bitcoin was $100,000, while the maximum pain level for Ethereum was $3,400.
As a result, Bitcoin and Ethereum are currently below their maximum pain levels of $91,100 and $3,010, respectively. Analysts believe this suggests investors are anticipating limited upward movement in the short term. However, it doesn’t necessarily mean a definitive rise or fall.
With billions of dollars worth of options expiring, liquidity conditions can change rapidly in both BTC and ETH.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bitcoin-and-ethereum-expect-a-15-billion-options-quake-today-will-btc-and-eth-reach-these-levels/
