Today, Bitcoin and Ethereum (ETH) options expire for about $ 2.2 billion.
We understand how the expiration of options will affect the short -term price dynamics of the two largest cryptocurrencies in capitalization.
Analysis of the expirations of Bitcoin and Ethereum options today
According to Deribit, today 2,221 optional Bitcoin contracts expire for $ 1.966 billion. The maximum pain point on these contracts is at $ 82,000, and the Put and Collus ratio is 0.96.
Today, the validity of 177,130 optional contracts for Ethereum with a nominal value of $ 279.789 million is also expiring. The point of maximum pain of ETH opticals is $ 1,600, and the ratio of the Put and Collus is 0.84.
In the trade in options, the point of maximum pain means the level of price at which cryptocurrency holders will incur the greatest losses. The ratio of Put and Call evaluates what moods prevail among investors. The indicator below suggests that market participants are optimistic and put on rising prices for bitcoin and Ethereum.
According to the theory on the maximum pain points in the options trading, cryptocurrencies often strive for their aspects in which the largest number of contracts (both calls and the Putes) expires without execution.
According to CoinmarketCap, at the time of writing, the BTC is traded at $ 84,492, and ETH is $ 1,582 each.
Analysts Greeks.live: Black Swan is possible
According to analysts Greeks.live, relative calm remains on the market. Nevertheless, bear mood prevail among its participants. Traiders put on the fact that Bitcoin will most likely return to the levels of $ 80,000–82,000.
Experts associate the current lull in the market with the fact that last week US President Donald Trump did not make any high -profile statements. However, the trade war continues, which is why economic uncertainty and volatility are growing.
Their forecasts are related to the statements of the head of the US Federal Reserve (Fed) Jerome Powell. After his yesterday’s performance, waiting for a reduction in the rate per 100 basic points this year decreased, which strengthened the correlation of the cryptorrhist with traditional assets.
In the current conditions, when the bulls turned into bears, and investors are suppressed, the probability of unpredictable events with large -scale consequences increases significantly, analysts emphasize.
Experts recommend acquiring “non-working” (OTM) plate options-insurance in case of collapse. These options are cheaper, since their striking price is lower than the current market, but they can make a profit with a sharp drop in the course.
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Source: Cryptocurrency
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