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$ 83,312.5
BTC
$ 83,312.5
-1.29 %
$ 1,901.55
ETH
$ 1,901.55
-1.59 %
$ 0.7152
ADA
$ 0.7152
-3.88 %
$ 623.44
BNB
$ 623.44
2.36 %
$ 128.55
SOL
$ 128.55
-4.85 %
Sujit Kumar
Aug 23, 2024
by Sujit Kumar

Bitcoin and Ethereum Options Data Signal Calm Market with Low Volatility

Bitcoin and Ethereum Options

Table of contents

  1. Looking Ahead
According to Greeks.live, 18,000 Bitcoin (BTC) and 140,000 Ethereum (ETH) options are set to expire, signaling a calm market phase. The BTC options have a put-call ratio of 0.83, while ETH options have a slightly higher ratio of 0.93. These ratios, which compare open interest in put contracts to call contracts, are often seen as indicators of market sentiment. A lower ratio typically points to bullish sentiment, while a higher one may suggest bearish expectations.

Max Pain Points and Market Sentiment

For Bitcoin, the max pain point—the price at which option holders would face the most significant losses—is at $60,000. Ethereum’s max pain point is slightly above $2,625. These levels are crucial as they represent the strike prices where the highest number of options contracts are set, potentially causing financial discomfort for option holders if the market moves against them.

Low Volatility and Market Calm

Despite the large volume of options set to expire, the market remains unusually calm. Greeks.live notes that positions in weekly options continue to decline, with just under 7% of total positions this week. Furthermore, there has been no significant increase in implied volatility, even with the anticipation of the annual central bank meeting. The data suggests that the market is in a steady, low-volatility cycle, with traders likely adopting a wait-and-see approach.

Looking Ahead

All eyes are now on the upcoming speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. The market’s current calm may shift depending on the economic insights shared during this much-anticipated event.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Bitcoin and Ethereum Options
Bitcoin and Ethereum Options Data Signal Calm Market with Low Volatility
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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