As Bitcoin and Altcoins Continue to Fall, Watch Out for Today: The Classic Options Crisis Day Has Arrived! “There’s a $2.9 Billion Risk!”

Bitcoin and altcoins, which have been unable to recover since the crash in October, continue to fall.

Although Bitcoin quickly recovered above $70,000 after falling to $60,000, it couldn’t maintain this gain. BC retreated back to the $66,000 level, while Ethereum also dropped below $2,000.

As the downward trend in the market continued ahead of the US CPI data release, the expiration date for options contracts in the crypto market arrived, as it does every Friday.

According to weekly data, approximately $2.9 billion worth of crypto options will expire on the Deribit derivatives exchange on February 13th.

According to Deribit data, $2.5 billion worth of Bitcoin ($BTC) and $406 million worth of Ethereum ($ETH) options will expire.

Accordingly, the Put/Call ratio for $BTC options is 0.76, while the maximum loss point is $75,000 and the intrinsic value is $2.53 billion.

Looking at Ethereum, $ETH options have a Put/Call ratio of 0.89, a maximum stop loss point of $2,150, and a nominal value of $406 million.

What Do Options Mean for Bitcoin and Ethereum?

The put/call ratio is 0.76 for Bitcoin and 0.89 for Ethereum, meaning investors are buying more than they are selling.

At this point, Deribit noted that following the liquidations that occurred after Bitcoin fell below $70,000 and the excessive short-term put option trend, positioning had shifted back towards call options.

Max pain, on the other hand, can often act like a magnet in options markets as the expiration date approaches.

In the options market, maximum pain is the price level at which investors incur the most losses, while options sellers feel most comfortable. In other words, it’s a level that acts like a magnet in the market as contracts expire.

At this point, the maximum pain level for Bitcoin is $75,000, while the maximum pain level for Ethereum is $2,150.

As a result, Bitcoin and Ethereum are currently below their maximum pain levels, at $66,500 and $1,940 respectively. According to analysts, this difference between spot prices and maximum pain levels may lead to limited upward movement in the short term. However, it does not necessarily mean a definite rise or fall.

With billions of dollars worth of options expiring, liquidity conditions could change rapidly for both $BTC and $ETH.

*This is not investment advice.