Will Prices See a Christmas Rally?
Friday is the expiration date for cryptocurrency options. Nearly $3 billion in Bitcoin (BTC) and Ethereum (ETH) contracts are set to be settled or renewed today. Cryptocurrency markets have been climbing on Trump’s rhetorical rally over the past few weeks, but can they continue?
Expired cryptocurrency options often lead to significant price increases volatilityprompting traders and investors to pay close attention to today’s developments.
$2.72 billion in Bitcoin and Ethereum options set to expire
Deribit reported that 20,815 Bitcoin contracts with a notional value of $2.077 billion are set to expire today. The put to call ratio is 0.83, indicating that traders are selling more calls (long contracts) than puts (short contracts).
The maximum pain point (the price at which the asset would cause financial harm to the largest number of holders) is $98,000. Notably, this is slightly lower than the current spot market price. $99,758.
Meanwhile, 164,330 Ethereum options contracts with a notional value of nearly $644 million are also set to expire today. The put to call ratio is 0.68, indicating that similar to Bitcoin, traders are selling more long contracts than short contracts.
Greek’s Live commented that this week’s market is dominated by adjustments. Unlike last week, Bitcoin’s adjustment was smaller, while altcoins’ adjustments were larger. However, as Christmas and annual deliveries approach, market makers begin to shift positions.
“Recently, large call option transactions have accounted for a relatively high proportion, with an average daily proportion of more than 30%. During Christmas periods in previous years, the trading enthusiasm in Europe and the United States will be significantly reduced. This year, the influence of U.S. stocks on cryptocurrencies has increased, and this phenomenon may become more obvious. ” explain.
This raises the question of whether there will be a Christmas rally this month, as the market once again shows stronger divergence. Currently, BTC is trading below $100,000, while ETH is trading below $100,000 $4,000.
Options market data over the past two weeks suggests Market makers are more cautious. Markets fluctuate sharply, with major implied terms rising slightly volatility (Four). Against this backdrop, analysts at Greeks.live say options are currently well-suited for short-term bets.
“…the cost-effectiveness of purchasing options remains very high,” they added.
Meanwhile, these expiring options come after a wild week. US economic data view. us inflation It rose to 2.7% in November, and core CPI remained at a sticky level of 0.3%. Although the Fed is widely expected to cut interest rates, inflation Complicating the path to continued monetary easing.
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