There’s a $3.6 Billion Options Earthquake in Bitcoin and Ethereum Today! Here’s Everything You Need to Know…

The leading cryptocurrency Bitcoin has made an attack in recent days, rising from the level of $ 105,000 to the level of $ 109,000.

While it remains uncertain whether this rise will continue, the expiration date for option contracts in the crypto market has come today, as it does every Friday.

According to the first weekly data for July, $3 billion worth of Bitcoin (BTC) and $612 million worth of Ethereum (ETH) options will expire on July 4 on the Deribit derivatives exchange.

Accordingly, the Put/Call Ratio of BTC options is 1.05, the maximum loss point is $ 106,000 and the notional value is $ 3 billion.

When we look at Ethereum, ETH options have a Put/Call Ratio of 1.24, a maximum loss point of $2,500, and a notional value of $612 million.

The maximum pain point is the level at which the price of a cryptocurrency settles at a certain value as an option approaches its expiration date, resulting in significant losses for the largest number of option traders.

At this point, significant volatility could be seen in Bitcoin prices as the $3 billion options expiration on July 4th. While the maximum pain point is at $106,000 for BTC and $2,500 for Ethereum, investors could push prices to this level through market manipulation, as market prices are above the maximum pain point.

What Does the Put/Call Ratio Signal for Bitcoin and Ethereum?

The put/call ratio is calculated by dividing the number of put options by the number of call options. A ratio below 1 means there are more buys than puts, indicating an uptrend. A ratio above 1 means there are more puts than calls, indicating a downtrend. A ratio close to 1 means the market is balanced or neutral.

For Bitcoin, this ratio is 1.05, while for Ethereum it is 1.24. For BTC, this ratio is 1 and indicates a balanced, sideways market, while for Ethereum, this ratio is above 1 and indicates a downward trend.

However, time will tell how these rates will affect the price. At this point, do not make your investment decisions based on a single data or report.

*This is not investment advice.

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