As Bitcoin and Ethereum Rally Stalls, $15 Billion Options Quake to Happen in BTC and ETH Today! What Should Investors Expect?

These options are more important because they fall on the last Friday of both the week and the month.

According to data for the fourth week of July, $12.3 billion worth of Bitcoin and $2.7 billion worth of Ethereum options will expire on July 25 on the Deribit derivatives exchange.

Accordingly, the Put/Call Ratio of BTC options is 0.88, the maximum loss point is $112,000 and the notional value is $12.66 billion.

When we look at Ethereum, ETH options have a Put/Call Ratio of 0.87, a maximum loss point of $2,800, and a notional value of $2.75 billion.

The maximum pain point is the level at which the cryptocurrency price settles at a certain value as an option approaches its expiration date, resulting in significant losses for the largest number of option traders.

At this point, significant volatility could be seen in Bitcoins price following the $12.66 billion options expiration on July 25th. While the maximum pain point is at $112,000 for BTC and $2,800 for Ethereum, investors could push prices to this level through market manipulation, as market prices are above the maximum pain point.

Derivatives trading platform Greeks Live noted in its weekly analysis that market sentiment remains bearish.

Analysts noted that investors tended to increase their put positions rather than reduce them, despite the fact that 90 percent of them suffered losses.

Analysts said that investors expected a decline due to increased volatility and focused on possible downward movements.

“Despite the large losses on put positions, investors are observed to continue increasing their positions.”

*This is not investment advice.