Many Ethereum and Bitcoin options contracts are scheduled to expire, but how will the markets react this time?
Recently, traders in derivatives have been favoring Ethereum options over Bitcoin options. Consequently, approximately 260,500 options contracts for ETH are about to expire.
There are only 30,500 contracts of Bitcoin options that are about to expire. Furthermore, when options and futures expire, the market frequently experiences volatility. Crypto markets have been energizing as of late and are logical due for a revision.
Bitcoin options are contracts that are derivatives and enable traders to speculate on the BTC price. They enable speculators to purchase or sell Bitcoin at a predetermined price, known as the strike price, on a predetermined expiration date. Also, they are more adaptable than prospects which have fixed expiry dates.
Neutral Bitcoin Options Greeks.live claims that the put/call ratio on Bitcoin options is 0.99. They also have a notional value of $0.93 billion and a maximum pain price of $29,000.
Divide the number of traded put (short) contracts by the number of traded call (long) contracts to get the put/call ratio. Since more traders are purchasing long contracts than shorts, a value below 1 is bullish. The current ratio favors bulls and bears pretty evenly.
The strike price with the most open contracts is referred to as the maximum pain price. Additionally, it is the price at which the asset would result in the greatest number of contract holders suffering financial losses upon expiration.
The Ethereum options have a put/call ratio of 0.83, a maximum pain price of $1,850, and a notional value of $5.5 billion. This suggests that traders in Ethereum derivatives have a slightly more bullish outlook.
Following the successful Shapella upgrade on April 12, Ethereum has surged today. At the time of writing, ETH is at a day high of $2,114, an increase of 10.3%.
The crypto market capitalization is at its highest level since May 2022, according to the outlook. CoinGecko says that as a result, the amount has reached $1.33 trillion.
This time, BTC has not been in charge, as it has only gained 2% on the day. At the time of writing, the asset was trading at $30,773.
