The recent price increase of Bitcoin has drawn interest to the market situation, particularly in light of the options contracts expiry.
Price Dynamics of Bitcoin
In recent days, Bitcoin has shown significant growth, rising from $105,000 to $109,000. While the future trend remains uncertain, the expiry of options contracts on the cryptocurrency market is expected today.
Options Contracts Analysis
According to data for the first week of July, on July 4, options worth $3 billion on Bitcoin and $612 million on Ethereum will expire on the Deribit derivatives exchange. The Put/Call Ratio for Bitcoin options is 1.05, and the maximum pain point is $106,000.
What Does the Put/Call Ratio Signal?
The Put/Call ratio is calculated as the number of put options divided by the number of call options. A ratio below 1 indicates more calls than puts, suggesting an uptrend, while a ratio above 1 means more puts than calls, indicating a downtrend. For Bitcoin, this ratio is 1.05, while for Ethereum it is 1.24.
Currently, the cryptocurrency market is showing significant volatility due to the expiry of options contracts. Investors are advised to consider all available data before making decisions.
