In August, Bitcoin and Ethereum showed significant growth, reaching new all-time highs. However, with slowing trends and increasing uncertainty, the market entered a consolidation phase.
August Recap for BTC and ETH
In August, Bitcoin (BTC) and Ethereum (ETH) experienced notable price increases, reaching new all-time highs. However, macroeconomic data and growing uncertainty led to a slowdown in upward momentum, resulting in the BTC and ETH racing into a consolidation phase.
Options Expiration and Its Importance
On the last Friday of August, August 29, options worth $11.7 billion for Bitcoin and $3.2 billion for Ethereum expired on the Deribit exchange. This expiration is particularly significant since it occurred on the last Friday of both the week and the month. The Put/Call Ratio for BTC stands at 0.79 with a maximum pain point of $116,000, while for ETH it is 0.76 with a maximum pain point of $3,800. These ratios indicate a cautious yet optimistic sentiment in the market with more buy orders than sell orders.
Market Outlook for September
With the expiration of options, higher volatility is expected, which could lead to price corrections for both assets. Currently, Bitcoin is trading at $111,000 and Ethereum at $4,450. Options data suggests a possible correction for ETH and potential upside for BTC.
In September, a continued bullish sentiment in the cryptocurrency market is anticipated. However, the expiration of options may trigger price fluctuations, and traders should remain cautious.
