Key Points
- Bitcoin (BTC) saw a 5% surge ahead of the expiry of 61,000 Bitcoin option contracts today.
- Market sentiment appears optimistic as the put-to-call ratio is below 1, indicating more purchase options than sell options.
The leading cryptocurrency, Bitcoin (BTC), experienced a significant increase of over 5% in the past day, pushing it back above $67,000. This surge comes just before the expiry of 61,000 Bitcoin option contracts today, with a notional value of $4.1 billion.
Market Sentiment and Volatility
According to data from Geeks Live, the put-call ratio stands at 0.62, with a max pain point at $63,500. The max pain point is the price level that would result in the most significant financial loss for option holders. A put-call ratio below 1 indicates a higher number of purchase (call) options than sell (put) options. This week’s ratio suggests traders are favoring buying options, indicating a positive market sentiment.
Geeks Live data also shows a significant increase in implied volatility (IV) for major terms, with short-term IVs increasing by 10% or more compared to the previous week. Today also marks the monthly expiry for July, so the IVs are likely to be larger than expected. As information from the Bitcoin conference is processed over the weekend, IVs are expected to face further downward pressure next week following today’s monthly delivery.
Bitcoin Price Recovery
Bitcoin’s price has been trading within a specific range recently. Yesterday, Bitcoin bounced back from its crucial support levels of $65,000. Rekt Capital, a well-known crypto analyst, shared a chart stating that the retest of the support was successful. Therefore, the BTC price could potentially reach $71,500.
The recent launch of spot Ethereum exchange-traded funds (ETFs) in the US has intensified the current market dynamics. Analysts at Deribit noted that the combined effects of the Mt. Gox distribution, ETF outflows, and a downturn in the Nasdaq are contributing to the current market trends.
