A Day Worth 2.6 Billion Completed in Bitcoin and Ethereum: The Risk of Getting Dumped is Increasing! - Coin Bulletin

Bitcoin (BTC) and Ethereum (ETH) options closed at critical levels due to major players turning to put options.

The last trading day of the week in the cryptocurrency options market was completed with striking developments. According to Greeks.live data, while 26 thousand Bitcoin (BTC) options expired, it was announced that the total position exceeded a value of 2.2 billion dollars. The selling/buying ratio of these options (Put Call Ratio) was recorded as 1.24, while the maximum pain point (Maxpain point) was 84 thousand dollars. On the Ethereum (ETH) front, a total of 220 thousand options expired, and their total value amounted to approximately 400 million dollars. The Put Call ratio for ETH was determined to be 1.42, and the Maxpain level was set at 1,850 dollars.

This week marked the first delivery after last week's quarterly futures options settlement. To mitigate the uncertainty in the market, large investors made more put (sell) option purchases. Due to weakness in the market, these options were mostly held until expiration and the closing prices were close to Maxpain levels. Thus, the amount of delivered options accounted for more than 10% of total positions.

Possible risks are increasing

On the other hand, there are significant signs of deep change in the markets. While June futures options create the largest positions, the share of put options in total volume and position ratio is increasingly rising. Due to global uncertainty stemming from Trump and US equities, implied volatility remains at high levels. While this volatility for BTC is above 50%, it is around 65% for ETH.

The scarcity of new capital inflows, the lack of strong narratives, and low investor sentiment are constraining the cryptocurrency market. In this environment, it is emphasized that the likelihood of sudden and unexpected events, i.e., black swan risks, is increasing, and it is suggested that it may be beneficial for investors to purchase long-term and low strike price ( deep OTM ) put options.