The post Bitcoin’s Put-to-Call Ratio Tops 1.0: Bearish Signs Ahead? appeared on BitcoinEthereumNews.com.

Crypto markets will witness $3.42 billion in Bitcoin and Ethereum options contracts expire today. The massive expiration could cause a short-term price impact, particularly as markets wait expectantly for Bitcoin to tag $100,000. With Bitcoin options valued at $2.86 billion and Ethereum at $561.66 million, traders are bracing for potential volatility. Unlike Ethereum, Traders Bet On Bitcoin Price Pullback There has been a significant increase in Bitcoin (BTC) and Ethereum (ETH) contracts due for expiry today compared to last week. According to Deribit data, 28,905 Bitcoin options contracts will expire on Friday with a put-to-call ratio of 1.09 and a maximum pain point of $86,000. Expiring Bitcoin Options. Source: Deribit On the other hand, 164,687 Ethereum contracts are due for expiry today, with a put-to-call ratio of 0.66 and a maximum pain point of $3,050. Expiring Ethereum Options. Source: Deribit Bitcoin’s Put-to-call ratio stands above 1, indicating a generally bearish sentiment despite BTC’s whales and long-term holders fueling its recent growth. In comparison, Ethereum counterparts have a put-to-call ratio of 0.66, reflecting a generally bullish market outlook. The put-to-call ratio gauges market sentiment. Put options represent bets on price declines, whereas call options point to bets on price increases. When this ratio is above 1, it suggests a lack of optimism in the market, with more traders betting on price decreases. On the other hand, a put-to-call ratio below 1 suggests optimism in the market, and more traders are betting on price increases. Bitcoin’s Put-to-Call Ratio, Implications for BTC As options near expiration, traders are betting on BTC prices dropping and ETH prices rising. According to the Max Pain Theory in options trading, BTC and ETH could each pull toward their maximum pain points (strike prices) of $86,000 and $3,050, respectively. Here, the largest number of contracts — both calls and puts — would expire…

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Filed under: News - @ November 22, 2024 7:26 am