Investors exercise caution as $2.6 billion worth of Bitcoin and Ethereum options reach expiration
Bitcoin and Ethereum options with a combined value of nearly $2.6 billion expired today as the market experienced a downturn. According to Greeks.live, 25,000 BTC options expired, with a Put Call Ratio of 0.56. This ratio suggests that there was more interest in call options than put options, indicating optimism among some investors.
The Max Pain point for Bitcoin options was $67,000, with a notional value of $1.7 billion. Additionally, 250,000 ETH options expired, with a Put Call Ratio of 0.51 and a Max Pain point of $3,500, amounting to a notional value of $890 million. The Max Pain point represents the strike price at which most options would expire worthless, and it is often seen as a pressure point for the market.
The recent pullback in the crypto market has defied expectations of a sustained rally. Bitcoin’s inability to stay above $70,000 has led to a decrease in price. This week, there has been an increase in demand for put options and implied volatility across all major terms. Surprisingly, many put positions closed at a profit, indicating a strategic exit by investors.
Bitcoin’s price has dropped by 6% today and is now below $63,000. This decline aligns with a record outflow of $742 million from Bitcoin ETFs over the week, highlighting investor caution and a shift in market sentiment. As prices approach the Max Pain points, the fear of missing out sentiment has diminished, signaling a more cautious approach by market participants.
