The cryptocurrency market is witnessing a substantial shift in investor sentiment as a significant number of (BTC) and (ETH) options approach their expiration dates. This week has seen a marked decline in BTC Call positions, while ETH Put positions have increased noticeably, indicating a move towards more balanced bets on volatility.
Bitcoin options worth $560 million, equivalent to 22,000 BTC with a Put-Call ratio of 0.74 and a critical high of $26,000, are about to expire. In parallel, Ethereum options worth $250 million, amounting to 156,000 ETH with a Put-Call ratio of 1.09 and a critical high of $1,650, are also about to expire. The maximum breakpoint is an essential metric that suggests the strike price at which option buyers would owe the least amount to option sellers at expiration.
This week's trading strength has decreased compared to previous periods. Market activity has been relatively calm with moderate intraday fluctuations in both BTC and ETH. Volatility was mainly noted on Tuesdays. This calm in the market is attributed to the lack of shocking news.
Bitcoin value has recovered from its recent low of $25,000 due to concerns related to asset liquidation pressure by FTX. Following last month's release of Consumer Price Index (CPI) and Producer Price Index (PPI) data, Bitcoin is now trading at around $26,500.
These impending option expirations and current market trends reflect cautious but changing sentiment in the cryptocurrency sector. Traders are closely monitoring price movements and open interest as we progress this week.
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