Cryptocurrency's $3 billion betting option has crashed: Is the downward trend persistent?
Ah, Fridays. The weekend's on the horizon, but before we dive into our plans, the crypto world's got some drama brewing! Let's see what's cooking in the markets on a usual Friday.
A massive $3.2 billion crypto option is due to mature today. Futures contracts are the stars of the show today, as spot markets have taken a breather after a spell of consolidation.
You got about 26,500 Bitcoin options contracts, worth a whopping $2.7 billion, coming to a close on May 16th. The put/call ratio here is 0.99, indicating that investors are sitting pretty, divided almost equally between those betting on bull markets and those with bearish predictions.
The "maximum pain point" for this round? It's when the spot price hits the $100,000 mark. But guess what? The current price is skating below the $40,000 mark. Not quite hitting the bullseye yet, ey? And let's not forget about the $1.5 billion open position that's giving this event some serious weight. High open positions are also popping up at the $110,000 and $120,000 levels, suggesting investors are throwing their hats into the ring for new record highs.
Market analysis firm Greeks Live dropped a report this week, foretelling some uncertainty among investors. Some think we're heading for a new record in May or June, while others forecast resistance at around $105,000. Time will tell, huh?
Analysts have been noticing a trend of some long positions getting cashed in for profit, and a shift towards more conservative strategies taking the spotlight.
And it's not just Bitcoin options heading for the big sleep today; Ethereum options are getting their beauty rest too. Roughly 220,000 Ethereum options, worth a combined $570 million, are due to expire. The "max pain point" floats around $2,200, and the put/call ratio of 1.24 indicates a noticeable preference for sell-side positions.
Off the Topic: The US-China Trade Agreement and Crypto
The total market cap of crypto assets has taken a dip of 2% in the past 24 hours, tumbling down to $3.45 trillion. Despite the decline, Bitcoin has managed a 1.2% gain, clawing its way back up to the $104,000 level. But wait! It's been bobbing between $102,000 and $104,000 for the last week, and without fresh blood coming in, it's vulnerable to more shaky ground.
As for Ethereum, it's just hanging out around the $2,570 level. It's been struggling mightily to break through the $2,700 resistance point.
When it comes to altcoins, the picture's a bit chaotic. Some coins, like XRP, Dogecoin, Chainlink, and Avalanche, are headed south, while others, such as Binance Coin, Sui, and Hyperliquid, have as much as a slight upward tick.
Binance Bonus: Exclusive $600 Gift (Just for You!)
Sign up with Binance with this link, and score yourself a sweet $600 bonus! Yes, sir, you read that right! Check it out here and reap the rewards!*
* Details: Facebook • Twitter • LinkedIn • Telegram
Sources:
- [1] Bitcoin Option Expiries and Their Impact on Bitcoin’s Market Cycles
- [2] How Correlated are Bitcoin and Ethereum?
- [3] Understanding Max Pain Point in Options Trading
- [4] Options Expirations and Their Potential Impact on Ethereum’s Price
- [5] Understanding Greeks: Implied Volatility, Delta, Theta, Vega, and Rho
The high open positions in Bitcoin options at the $110,000 and $120,000 levels suggest investors are anticipating new record highs in the coming days, aligning with the bullish predictions within the Web3 finance realm. Meanwhile, the Ethereum options expiring today, worth a combined $570 million, indicate a significant preference for sell-side positions, underscoring the cautious approach that technology-driven investors are adopting in the current market landscape.
