On Friday, a large number of Bitcoin options and Ethereum options are expiring in what seems to be a tight fight between the bulls and the bears. Interestingly, a day before the expiry both – BTC and ETH entered a strong rally gaining 7% and 10% respectively.
Bitcoin Options Expiry
As per the data from Deribits, a total of 32,000 BTC options contracts are set to expire today with a put call ratio of 0.71. The notional value of the expiry is $1.943 billion while the max pain point of $60,000.
The Yen rate hike last week induced severe volatility in the crypto market with the Bitcoin price dropping under $50,000 earlier on Monday. However, the Bank of Japan suggested a softer stand going ahead if the market instability escalates. This led to a strong recovery in the last four days, with BTC surging sharply by 20% currently trading at more than $61,000 levels.
Also, the implied volatility has decreased to a great extent but still remains higher than the pre-crash levels. The ongoing market volatility makes it challenging for IVs to decline rapidly over a short period.
The Grayscale Research report notes that if the US economy avoids recession and manages a “soft landing,” the token valuations can rebound with Bitcoin testing its all-time high levels by the end of the year. Besides, the report also noted that there is little tolerance for a deep economic recession and the Fed could pivot soon to rate cuts on the first sight of trouble.
Also Read: CBOE Resubmits Bitcoin ETF Options Trading Application, Q4 Approval Likely?
Ethereum Options Expiry
A total of 206,000 ETH options are set to expire today with a put-call ratio of 0.96, a notional value of $560 million, and a max pain point of $2,950. The put-call ratio close to 1 shows that it’s a tight fight between the bulls and the bears.
In the last 24 hours, the Ethereum price has witnessed a strong rebound jumping 10.70% and shooting at the way to $2,700. As per the technical charts, ETH can further extend a rally to $2,820.
#Ethereum forms a bull pennant on lower time frames, indicating a potential rise of over 4% towards $2,820! pic.twitter.com/EHp4XwBF3F
— Ali (@ali_charts) August 9, 2024
The Ethereum ETFs were showing major strength during the market collapse, however, have been seeing outflows as the market revived in the last two days.
The post BTC, ETH Options Expiry Coincides With Huge Bullish Recovery appeared first on CoinGape.
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