As a seasoned crypto investor with a few battle scars from past market crashes, I’m keeping a close eye on the current situation unfolding in the market. The recent bearish takeover by Bitcoin bulls has left me feeling a sense of déjà vu as investors scrambled to sell their BTC holdings. The price drop to February levels, with BTC hitting a low of $53,400, is a stark reminder that volatility is an inherent part of the crypto market.
As a crypto investor, I’ve noticed that bears have recently gained the upper hand in the market, causing me and many others to feel uneasy about our Bitcoin holdings. The news of Mt. Gox’s troubles, along with actions taken by the US and German governments, have added fuel to the fire. The price of Bitcoin has dropped significantly, reaching a low of $53,400 – a level not seen since February. Today’s Bitcoin and Ethereum options expiry could put even more pressure on the market. Based on on-chain data, it seems that the panic selling hasn’t reached its peak yet.
Bitcoin and Ethereum Set to Expire Today
In just two days, the value of the worldwide crypto market dropped by over 13 percent following the market crash, resulting in losses for investors totaling over 250 billion dollars.
Approximately 18,300 Bitcoin options with a total value of one billion dollars are due to expire on Deribit. The put-call ratio stands at 0.65. The price that would cause the maximum number of these options to reach their strike price is currently $61,500, down from $63,500 as Bitcoin experiences selling pressure. If Bitcoin’s price continues to decline and falls below the $55,000 support level, it could potentially drop further to hit the $52,000 support.
Significantly, the put-call ratio in the past 24 hours stands at 0.88, with put bets experiencing substantial growth in the crypto market downturn. The put volume for the same period exceeds 19,552, while call volume hovers around 22,088. Moreover, there has been a notable jump of approximately 10% in both Historical Volatility and Bitcoin Volatility Index (DVOL), suggesting that options traders have adopted a predominantly bearish stance towards Bitcoin.
Approximately 163,170 Ethereum options with a total notional value of $472 million are approaching their expiration dates. The put-call ratio now stands at 0.78, while the max pain price is set at $3,350. This suggests significant losses for traders, as the Ethereum price has dropped below the crucial level of $2,890. In the last 24 hours, there was a noticeable increase in put volume to 98,643, whereas call volume remained higher at 126,788.
$700 Million Liquidated From Crypto Market
Based on the analysis of a verified on-chain expert from CryptoQuant, the full-blown panic in the Bitcoin market has yet to set in. He anticipates this will occur once orange bars emerge on the BTC Daily Realized Profit Loss Ratio 30DMA chart. The expert further noted that the current price level of $47,000 doesn’t seem as alarming as it did three weeks ago when we were at $70,000.
According to Coinglass, approximately $700 million worth of cryptocurrencies were forcedly sold in the market, resulting in over 235,000 traders being liquidated. The largest single transaction among these liquidations took place on Binance, with a value of around $18.48 million, representing the sale of Ethereum.
Over $700 million worth of long and short crypto positions were terminated in the past 24 hours, resulting in a significant market downturn. Notable liquidations occurred in PEPE, PEOPLE, ORDI, WLD, LTC, FIL, ADA, BCH, and other altcoins as well.
Troubled cryptocurrency platform Mt. Gox initiated the process of returning approximately $10 billion in Bitcoin (BTC) and Bitcoin Cash (BCH) on July 5, as stated in an official communication. As per reports from Arkham, Mt. Gox transferred around 47,229 BTC valued at roughly $2.97 billion today.
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2024-07-05 09:56