As a seasoned researcher with years of experience navigating the cryptocurrency markets, I find myself intrigued by today’s Bitcoin and Ethereum options expiry. The recent rallies, especially the 7% surge in BTC and 10% jump in ETH, have added an interesting twist to this tight battle between the bulls and bears.
As a long-time cryptocurrency investor with a keen eye for market trends, I find myself closely watching the upcoming expiration of Bitcoin (BTC) and Ethereum (ETH) options this Friday. The battle between the bulls and bears seems to be reaching its climax, with both digital assets experiencing a strong rally in the days leading up to the expiry – BTC gained 7% and ETH surged by 10%.
Bitcoin Options Expiry
According to Deribits data, there will be approximately 32,000 Bitcoin options contracts expiring today, with a put-call ratio of 0.71. The total value of these expiring contracts is about $1.943 billion. The maximum potential loss or “max pain point” is expected at the price level of $60,000.
Last week’s increase in Yen rates sent shockwaves through the crypto market, causing Bitcoin’s price to plummet below $50,000 on Monday morning. But when the Bank of Japan hinted at a gentler approach if instability persists, it sparked a remarkable rebound over the past four days. In fact, Bitcoin has seen a significant surge, gaining around 20% and now trading above $61,000.
As a crypto investor, I’ve noticed that the implied volatility has significantly lessened, yet it continues to be higher than what we saw before the market crash. This persistent volatility in the market is making it difficult for Implied Volatilities (IVs) to decrease rapidly over a short timeframe.
According to Grayscale Research, if the US economy successfully navigates a “soft landing” (avoiding a full-blown recession), cryptocurrency token values could recover significantly, potentially even reaching their record highs for Bitcoin by the end of the year. Moreover, the report indicates that there’s limited room for a severe economic downturn, and if signs of trouble emerge, the Federal Reserve might swiftly switch to reducing interest rates.
Ethereum Options Expiry
Today sees the expiration of approximately 206,000 Ethereum (ETH) options, with a total notional value of about $560 million. The put-call ratio is around 0.96, indicating that the struggle between bullish investors (bulls) and bearish investors (bears) is quite close. The max pain point for these options is at roughly $2,950.
Over the past day, Ethereum’s price has seen a significant surge, increasing by approximately 10.70%. It’s currently aiming for around $2,700. According to technical analysis, Ethereum could potentially continue its upward trend and reach as high as $2,820.
As a crypto investor, I’m excited about the current formation of a bull pennant in Ethereum on lower timeframes. This pattern suggests a possible surge of approximately 4% that could push its price up to around $2,820!
— Ali (@ali_charts) August 9, 2024
During the recent market downturn, Ethereum ETFs demonstrated significant resilience. However, since the market began recovering over the past two days, these ETFs have experienced a decrease in investment, indicating outflows.
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2024-08-09 11:48