There's a $5 Billion Options Quake in Bitcoin and Ethereum Today! What to Expect for BTC and ETH Prices?

The leading cryptocurrency Bitcoin has been showing quite volatile movements in recent days. At this point, BTC rose to above $69,000 in the early hours of Monday, but then fell to $66,000.

While it was moving at $ 67,000 levels in the last hours, the expiration date for option contracts in the crypto market came today, as it does every Friday.

These options are of even greater importance as they fall on the last Friday of October, as investors are wondering whether the decline experienced since the beginning of the week will reverse. So how will the last options of October affect the cryptocurrency market?

According to the news of Singapore-based crypto options data platform Greeks.live, 63 thousand Bitcoin and 403 thousand Ethereum options will expire on October 25.

Accordingly, the Put/Call Ratio of BTC options is 0.66, the maximum loss point is $64,000 and the notional value is $4.26 billion.

When we look at Ethereum, ETH options have a Put/Call Ratio of 0.97, a maximum loss point of $2,600, and a notional value of $1.02 billion.

Greeks Live analysts noted that Bitcoin dominance in the options market has returned to 2021 levels. The analysts added that this situation is directly related to Ethereum’s weakness and that options market indicators are almost entirely based on Bitcoin data.

Analysts also said that the market moved below “Uptober” expectations and did not meet investors' expectations. At this point, BTC could not even exceed its ATH in March, while analysts stated that the US presidential elections would be important for Bitcoin and cryptos and should be followed closely.

Analysts noted that BTC’s implied volatility (IV) for November options stabilized at 55% ahead of the election, adding, “This rate creates an excellent environment to position against pre-election volatility.”

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 that there are more put options than calls, indicating a downtrend. A ratio close to 1 means that the market is balanced or neutral.

This ratio is 0.66 for Bitcoin; 0.97 for Ethereum. Accordingly, these ratios indicate an increase for BTC and a neutral or downward trend for ETH. However, time will tell how these ratios will affect the price. At this point, do not make your investment decisions based on a single data or report.

Oct. 25 Options Data
63,000 BTC options expired with a Put Call Ratio of 0.66, a Maxpain point of $64,000 and a notional value of $4.26 billion.
403,000 ETH options expired with a Put Call Ratio of 0.97, a Maxpain point of $2,600 and a notional value of $1.02 billion.
Today is… pic.twitter.com/fx6ZeRbMYT

— Greeks.live (@GreeksLive) October 25, 2024

*This is not investment advice.