The cryptocurrency markets have been experiencing subdued price action this week as traders grapple with growing concerns over a potential trade war. Speculators are largely on the sidelines, awaiting clearer signals, while a major options expiry has offered fresh insights into market sentiment.
On Friday, February 7, over $3 billion in Bitcoin (BTC) and Ethereum (ETH) options expired. Bitcoin saw 26,000 BTC options worth $2.54 billion, with a put-call ratio of 0.58 and a max pain point at $99,500. Meanwhile, Ethereum faced 203,000 ETH options valued at $560 million, with a put-call ratio of 0.46 and a max pain point of $2,950.
Options contracts give traders the right to buy (call) or sell (put) an asset at a predetermined price. The balance of these contracts provides a snapshot of market sentiment. A lower put-call ratio generally signals bullishness, while a higher ratio suggests a bearish outlook. The max pain point indicates the price level where the most options expire worthless, revealing potential price targets traders are eyeing.
Interestingly, despite the uncertainty, the expiry data shows a mixed sentiment. For Bitcoin, the max pain point has risen from $98,000 last week to $99,500, suggesting some optimism. However, this increase is modest, signaling cautious optimism rather than full-blown bullishness. On the other hand, Ethereum’s max pain point dropped from $3,300 to $2,950, reflecting weaker sentiment in the ETH market.
Greeks.live, an options trading analytics provider, has raised concerns over the rising volume of put options, signaling a growing bearish sentiment. As markets await the release of U.S. January 2025 jobs data, including the unemployment report and non-farm payroll figures, market participants are adjusting their positions in anticipation of potential rate cuts or further economic pressure.
7 Feb Options Data
— Greeks.live (@GreeksLive) February 7, 2025
26,000 BTC options expired with a Put Call Ratio of 0.58, a Maxpain point of $99,500 and a notional value of $2.54 billion.
203,000 ETH options expired with Put Call Ratio of 0.46, Maxpain point of $2,950 and notional value of $560 million.
Market sentiment was… pic.twitter.com/UbN9mtdrJ6
As of now, Bitcoin trades around $97,100, while Ethereum hovers near $2,700. How the markets respond to the U.S. jobs report could provide further clarity on the future direction of crypto assets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Ripple CTO Talks Future of Crypto as Bitcoin Struggles & Altcoins Face Uncertain Path
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