After a seven-year hiatus, the US government shut down due to an unresolved budget crisis. While this shutdown wasn't expected to last long, Bitcoin, Ethereum, and altcoins surged despite the uncertainty surrounding the shutdown.
Weeks later, BTC surpassed $120,000, while Ethereum surpassed $4,500. This upward trend is expected to continue into October, the month known as Uptober, and today, as every Friday, the expiration date for options contracts in the crypto market has arrived.
According to the first weekly data for October, $3.32 billion worth of Bitcoin (BTC) and $963 million worth of Ethereum (ETH) options will expire on October 3 on the Deribit derivatives exchange.
Accordingly, the Put/Call Ratio of BTC options is 1.15, the maximum loss point is $115,000 and the notional value is $3.32 billion.
When we look at Ethereum, ETH options have a Put/Call Ratio of 0.93, a maximum loss point of $4,200, and a notional value of $963 million.
When we look at the put/call ratio, we see that it's 1.15 for BTC and 0.93 for ETH. These ratios indicate that sell orders for Bitcoin are greater than buy orders, and options traders are bearish.
In contrast, the put/call ratio for ETH is 0.93, reflecting a more neutral investor sentiment than Bitcoin. This suggests that options traders are taking positions in anticipation of continued sideways movement in the Ethereum price, according to analysts.
The maximum pain point is the level at which the cryptocurrency price settles at a certain value as an option approaches its expiration date, resulting in significant losses for the largest number of option traders.
At this point, traders typically pay attention to the highest pain level, which can exert a significant pull on price movement toward expiration.
Bitcoin and Ethereum are currently trading well above their maximum loss levels, but market makers and options sellers may attempt to push BTC and ETH to the $115,000 pain point and $4,200 pain point, respectively, to offset their positions.
As of writing, Bitcoin and Ethereum are trading at $119,900 and $4,455 respectively.
*This is not investment advice.