This surge notably results from several catalysts in play, such as the surging interest of institutional investors and the US approval of spot Bitcoin Exchange-Traded Funds (ETFs).<\/p>\n
Upcoming Options Expiry Impact’s Bitcoin Price<\/h2>\n
However, Bitcoin has seen a slight downturn following<\/a> its recent surge over the past 24 hours. Despite being significantly up over the past month, the asset has declined by nearly 10% in the past day, with its current trading volume slightly decreasing to $44 billion from over $50 billion yesterday.<\/p>\n This sudden dip can largely be attributed to the imminent expiration of options. According to the options trading platform Greeks.live, a substantial 36,000 BTC options are set<\/a> to expire soon, featuring a Put Call Ratio of 0.9.<\/p>\n Notably, the ‘Put Call Ratio’ serves as a sentiment indicator, assessing the market mood by comparing the volume of put options to call options. It is calculated by dividing the number of traded put options by the number of traded call options.<\/p>\n Put options grant the holder the right (but not the obligation) to sell a specified amount of an underlying asset at a predetermined price within a specific timeframe. Conversely, call options allow the holder the right (but not the obligation) to buy a specified amount of an underlying asset at a set price<\/a> within a specific timeframe.<\/p>\n The Put Call Ratio is interpreted in two ways: a high ratio (greater than 1) and a low ratio (less than 1). A low ratio suggests more call options are being bought than put options, indicating bullish market sentiment as more traders expect the market to rise.<\/p>\n Conversely, a high ratio indicates that more put options are being bought than call options, suggesting bearish market sentiment<\/a> as more traders anticipate a market decline.<\/p>\n Jan12 Options Data \u2014 Greeks.live (@GreeksLive) January 12, 2024<\/a><\/p><\/blockquote>\n With Bitcoin’s Put Call Ratio currently at 0.9, as reported by Greeks.live, it implies that traders are leaning towards a bearish move for Bitcoin. This anticipated decline may contribute to Bitcoin’s current dip, despite the recent commencement<\/a> of spot Bitcoin ETF trading in the US.<\/p>\n\n
\n36,000 BTC options are about to expire with a Put Call Ratio of 0.9, a Maxpain point of $45,000 and a notional value of $1.68 billion.
\n262,000 ETH options are due to expire with a Put Call Ratio of 0.64, a Maxpain point of $2,400 and a notional value of $680\u2026 pic.twitter.com\/LSKNGKVjrH<\/a><\/p>\nBitcoin’s Bullish Potential<\/h2>\n