Bitcoin options worth over $530 million are set to expire today, with BTC prices at a six-week low due to suppressed market volume and volatility. Today’s expiry of 18,000 Bitcoin options contracts with a max pain point of $29,500 indicates the level at which most losses will be incurred.
The low market volatility for the past six weeks has contributed to keeping expiration prices close to this point, signaling an extended bear market period. The put/call ratio of 0.38 implies that more investors are opting for call or long contracts, indicating some hope for a potential upside in the near future.
The recent decline in Ethereum prices, accompanied by a bearish six-month call-put skew suggested that investors are betting on further weakness in the coming months. Ethereum’s price also touched a six-week-low of $1,815 Speculation around the U.S. SEC potentially categorizing most cryptocurrencies, except for Bitcoin, as securities, has fueled bearish sentiment among investors.
Despite the challenges faced by the broader crypto market, Bitcoin has shown resilience and strength. During the recent US banking crisis in March 2023, Bitcoin rose by 30%, outperforming major bank stocks that continued to plummet. Moreover, in June 2023, Bitcoin’s resounding comeback led it to reclaim the $30,000 mark after a rollercoaster ride of highs and lows. The filing of applications for spot Bitcoin exchange-traded funds (ETFs) by major asset management firms, including BlackRock, WisdomTree and Invesco, has further instilled confidence in Bitcoin as a long-term investment.
The recent successes of Bitcoin underscore its resilience and potential, while the bearish sentiment surrounding Ethereum and other altcoins requires close attention. With regulatory considerations looming, the wider crypto sector’s trajectory remains uncertain. However, the surge in ETF filings for Bitcoin demonstrates continued belief in its growth and adoption, reinforcing its position as a leading cryptocurrency in the market.