Today on March 29, 2024, massive numbers of Bitcoin (BTC) and Ethereum (ETH) options contracts are going to expire and this huge number is one of the biggest in the realm of cryptocurrency. According to the data from an on-chain analytic firm Greekslive, a total of 135,000 BTC options and 1.58 million ETH options contracts reached their expiration date and because of this huge number, it is gaining huge attention from traders as well as investors.
Current Put Call Ratio below 1
For BTC, the Put Call Ratio stood at 0.85, indicating a slight dominance of put options over call options. Additionally, the Maxpain point for the current situation for Bitcoin options was noted at the $51,000 level as these options collectively held a notional value of $9.5 billion. The Put Call Ratio is a measure used by traders to consider market sentiment regarding the direction of an asset’s price.
A ratio below 1 typically suggests that there are more call options (bets on the price rising) than put options (bets on the price falling), indicating a bullish sentiment. Conversely, a ratio above 1 indicates a bearish sentiment, as there are more bets on the price falling.
In this case, with a Put Call Ratio of 0.85, it means that there were slightly more put options (bets on Bitcoin’s price falling) than call options (bets on Bitcoin’s price rising).
Similarly, in the ETH market, the Put Call Ratio was 0.63, suggesting a higher proportion of call options relative to put options. The Maxpain point for ETH options was observed at $2,600, with a notional value of $5.6 billion.
Despite bearish expectations market rally this week
The expiration of Bitcoin and Ethereum options overlapped with a massive quarterly delivery of over $15 billion in the crypto market. Despite these bearish expectations, the market experienced a decent rally throughout the week, and Bitcoin also hit $71,647 and gained over 6% upside momentum. This surge occurred despite high Implied Volatility (IVs) across major terms, highlighting the resilience and bullish sentiment in the market.
However, in the coming month, Bitcoin is going for a halving event. There is a possibility that the recent Put Call Ratio which is below 1 will be going to surge and traders’ as well as investors’ perceptions will be changed.