The major cryptocurrency Bitcoin (BTC) rose from $100,000 at the beginning of the week to more than $108,000 in news of a ceasefire between Israel and Iran.
Because they can’t keep here, BTC continues to move sideways at the $107,000 level, but as today Friday, the crypto market options agreement is expiring.
These options are even more important as they drop on the last Friday of both the week and the month.
Data shows $15 billion worth of Bitcoin (BTC) and $229 billion worth of Ethereum (ETH) options will expire on June 27th at Deribit Derivatives Exchange.
Therefore, the Put/Call ratio for the BTC option is 0.75, the maximum loss point is $102,000, and the expected value is $15 billion.
Looking at Ethereum, the ETH option’s Put/Call ratio is estimated to be 0.52, with a maximum loss point of $2,200 and $22.9 billion.
The biggest problem is that when an option approaches its expiration date, the cryptocurrency price will settle to a certain value, resulting in a large loss in the maximum number of option traders.
At this point, we saw significant volatility at Bitcoin prices as the expiration date for the $15 billion option on June 27th. The biggest problem is $102,000 for BTC and $2,200 for Ethereum, but investors can push prices to this level through market manipulation.
This means that the majority of investors are profiting. This allows some investors to realize profits and increase price volatility.
Evaluating Bitcoin’s options data, Deribit Asia Business Development Lin Chen said the PUT and call options ratios began to increase, reaching 0.75.
So this means that while the number of call options is ultimately large, the number of put options has also started to increase recently.
Lin Chen said the situation is not only due to expectations of a decline, but also because investors are looking for opportunities to buy at the bottom if there is a possibility of a decline.
“The increase in put options does not mean investors are expecting a decline in Bitcoin. Investors are acting strategically. Traders are selling put options and trying not to gain premiums, face the potential for decline, or buy BTC.”
*This is not investment advice.
