The cryptocurrency market is witnessing a substantial shift in investor sentiment as a significant number of Bitcoin (BTC) and Ethereum (ETH) options approach their expiration dates. This week has seen a marked decline in BTC Call positions, while ETH Put positions have notably increased, indicating a move towards more balanced betting on volatility.

Bitcoin options worth $560 million, equivalent to 22,000 BTC with a Put-Call Ratio of 0.74 and a max pain point of $26,000, are nearing their expiration. In parallel, Ethereum options valued at $250 million, amounting to 156,000 ETH with a Put-Call Ratio of 1.09 and a max pain point of $1,650, are also on the verge of expiry. The max pain point is an essential metric suggesting the strike price at which option buyers would owe the least amount to option sellers upon expiry.

This week’s trading strength has declined compared to previous periods. Market activity has been relatively calm with subdued intraday fluctuations in both BTC and ETH. The volatility was primarily noticeable on Tuesdays. This tranquility in the market is attributed to the lack of impactful news.

Bitcoin’s value has rebounded from its recent low of $25,000 due to concerns related to asset liquidation pressure from FTX. Following last month’s release of the Consumer Price Index (CPI) and Producer Price Index (PPI) data, Bitcoin is now trading at around $26,500.

These imminent option expirations and current market trends reflect a cautious but changing sentiment in the cryptocurrency sector. Traders are closely monitoring price movements and open interest as we move further into this week.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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