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The First Option Data of March Predicted the Fall in Bitcoin! What Does This Week’s Data Say For BTC And Ethereum?

Although the leading cryptocurrency Bitcoin reached $ 69,000 on March 5, it could not stay there due to the selling pressure it faced.

While BTC is expected to make another attack soon and reach a new ATH, all eyes are on Bitcoin and Ethereum options that will expire today.

According to the news of Singapore-based crypto options data platform Greeks.live, 29,000 BTC and 2700,000 ETH options will expire on March 8.

Accordingly, while the Put/Call Ratio of BTC options is 0.86, the maximum loss point is $60,000 and the notional value is $2 billion.

Looking at Ethereum, ETH options have a Put/Call Ratio of 0.55, a maximum loss point of $2,950, and a notional value of $1.05 billion.

At this point, after BTC and ETH options expire, fluctuations may be seen in the crypto market, especially Bitcoin prices. However, the data points upward for BTC. Because it seems that investors on Deribit, the world’s largest cryptocurrency options exchange, started buying options on Bitcoin at a price of $ 70,000 for the end of March.

Stating that the volatility in the cryptocurrency market has reached its highest level in a year, Greeks.live said that there was an increase in option trading volume and positions.

March 8 Options Data
29,000 BTC options are about to expire with a Put Call Ratio of 0.86, a max pain point of $60,000 and a notional value of $2 billion.
270,000 ETH options are due to expire with a Put Call Ratio of 0.55, a max pain point of $2,950 and a notional value of… pic.twitter.com/BR4LfAgn4s

— Greeks.live (@GreeksLive) March 8, 2024

What Does the Put/Call Ratio Indicate for Bitcoin and Ethereum?

The put/call ratio is calculated by dividing the number of put options by the number of call options. A ratio below 1 means there are more purchases than puts, indicating an upward trend.

A ratio above 1 means there are more put options than call options, indicating a bearish trend. A ratio close to 1 means the market is balanced or neutral.

For Bitcoin, this rate is 0.86; For Ethereum it appears as 0.55. Accordingly, the fact that this ratio is close to 1 for BTC indicates that the situation is balanced and neutral for BTC; It indicates a bullish trend for ETH.

However, time will tell how these rates, along with other data and signals, will affect prices. At this point, do not make your investment decisions based on a single data or report.

*This is not investment advice.

Source

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