Following the great crash on October 11, the fluctuations in Bitcoin and altcoins continue.
Although the FED cut interest rates during the week, FED Chairman Jerome Powell’s hawkish statements triggered the decline.
While BTC fell to the $106,000 level, altcoins also experienced significant declines.
While the cryptocurrency market experienced a recovery on the last day of the week, the expiration date for option contracts in the crypto market came, as it does every Friday.
These options are more important because they fall on the last Friday of both the week and the month.
According to weekly data, approximately $15.9 billion worth of crypto options will expire on October 31 on Deribit derivatives exchange.
According to Deribit data, $13.4 billion worth of Bitcoin (BTC) and $2.5 million worth of Ethereum (ETH) options are set to expire.
Accordingly, the Put/Call Ratio of BTC options is 0.7, the maximum loss point is $114,000 and the notional value is $13.4 billion.
When we look at Ethereum, ETH options have a Put/Call Ratio of 0.7, a maximum loss point of $4,100, and a notional value of $2.5 billion.
While the put/call ratio is 0.7 for both Bitcoin and Etheruem, these ratios indicate a cautious yet optimistic outlook in the market and a slight bullish sentiment among investors.
Max pain can often act as a magnet during expiration in options markets.
In the options market, maximum pain is the price level at which investors incur the greatest losses and options sellers feel most comfortable. In other words, it acts as a magnet for the market as contracts expire.
At this point, the maximum pain level for Bitcoin was $114,000, while the maximum pain level for Ethereum was $4,100.
As a result, Bitcoin and Ethereum are currently below their maximum pain levels of $109,500 and $3,830, respectively. Analysts believe this suggests investors are anticipating limited upward movement in the short term. However, it doesn’t necessarily mean a definitive rise or fall.
