Bitcoin
20,000 Bitcoin Options Expiration Positions Maximum Pain Price at $68,500, What’s Next?
O Bitcoin (BTC) the price trajectory is currently facing declines due to the market downtrend. Meanwhile, the expiration of 20,000 Bitcoin options on June 14, 2024 has attracted significant attention in the crypto market. The expiration of the latest options sets the maximum pain point at $68,500, raising speculation about what lies ahead for BTC price.
Understanding Bitcoin Options Expiration Numbers
The “maximum pain” point is a fundamental concept in options trading. It represents the price at which the greatest number of options contracts will expire worthless, causing the maximum financial loss to option holders. For Bitcoin, this point was calculated at $68,500.
The maximum pain point is significantly above current trading levels, indicating potential bullish sentiment among options traders. With a Put Call Ratio of 0.49 and a notional value of $1.35 billion, the expiration of this Bitcoin option has critical implications for BTC’s immediate price movement and market sentiment.
The Put Call Ratio (PCR) of 0.49 further supports this optimism. PCR is calculated by dividing the number of put options traded by the number of calls traded. An index below 1 suggests that more calls are being purchased than puts. Hence, it indicates that traders are expecting price increases.
despite the favorable economic data pushing the US stock market higher, the crypto market has underperformed this week. Conventional currencies, including Bitcoin, have seen a decline. Furthermore, altcoins suffered even steeper drops.
The relative calm of the market, with fewer hotspots and notable developments, also contributed to this subdued performance. This lack of dynamics is reflected in the levels of implied volatility (VI). Bitcoin’s short-term IV has fallen below 50%, while Ethereum’s IV has fallen below 60%. It suggests lower market expectations regarding significant price fluctuations and a more profitable environment for buyers.
Read too: Bitcoin Price: BTC Approaches Bull Cycle Peak, Is the $100K Dream Fading?
What’s in store for the market?
With upcoming news on the approval of the Spot Ethereum ETF S-1 expected later this month, there is a strategic opportunity for traders. The current low IV presents a favorable condition for entering call options, especially for ETH. Greeks Live noted that market anticipation could drive prices higher once the news broke, leading to higher profits.
With the optimism surrounding Ethereum, Bitcoin could also rise, making call options a viable move. However, Spot Bitcoin ETFs saw a massive outflow of $226 million, indicating lower interest among investors. Therefore, caution is advised when considering investing in Bitcoin options.
However, the Bitcoin Price Not being able to break this cycle is considered beneficial by analysts. Rekt Capital, a renowned crypto analyst, shared on X: “Bitcoin has never broken out so early in the post-halving period. If that were the case, the cycle would be accelerated to such an extent that the Bull Market would simply be shorter than normal.”
Therefore, he noted that the continued consolidation of Bitcoin’s price is in line with historical halving cycles. Therefore, analysts believe that the market will have a usual and strong bull run. Furthermore, if Federal Reserve interest rates are reduced in September this year, BTC could even rise to $100,000.
Read too: Bitcoin Price: BTC Approaches Bull Cycle Peak, Is the $100K Dream Fading?
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