The put-to-call ratio signals a bullish trend, with traders betting more on Bitcoin and Ethereum price increases.
By Bena Ilyas
Edited by Julia Sakovich
Updated
3 mins read
As crypto markets continue to ride high on what many are calling the “Trump rally”, traders and investors are eyeing today with a mix of hope and caution. Nearly $3 billion worth of Bitcoin BTC $103 189 24h volatility: 1.7% Market cap: $2.04 T Vol. 24h: $139.12 B and Ethereum ETH $3 302 24h volatility: 3.5% Market cap: $397.84 B Vol. 24h: $65.10 B options contracts are set to expire, sparking expectations for notable price swings.
According to Deribit, 317,212 Bitcoin contracts, valued at $2.1 billion, are due to expire. The put-to-call ratio of 0.54 signals that more traders are betting on price increases (long contracts) rather than decreases (short contracts). Meanwhile, Ethereum’s options market is seeing 2,150,646 contracts expiring, worth nearly $8,360.70 million, with a put-to-call ratio of 0.48, reflecting a more bullish trend than Bitcoin.
Both Bitcoin and Ethereum have been gaining ground recently, fueled by economic data and political expectations. However, these massive expirations may either boost or temper the current rally. Traders are closely monitoring the “maximum pain point”, the price at which most options holders will suffer losses. For Bitcoin, this sits at $98,000, slightly lower than its current price of $100,145.
Greeks Live observed significant corrections in the crypto market over the past week. Bitcoin experienced a relatively mild correction, whereas altcoins encountered steeper declines. The recent trend showed Block call options trading represented over 30% of the daily average.
“The recent Block call options trading accounted for a higher proportion, the daily average accounted for more than 30%. In previous years, the Christmas season in Europe and the US trading heat will be significantly reduced. This year, the influence of US stocks on the crypto rises, and this phenomenon may be more obvious,” said Greeks Live.
Market makers are shifting their positions ahead of the holiday season and annual settlements. Traditionally, trading volume tends to dip in December, but this year may prove different. The link between US stock performance and crypto markets appears stronger than ever, potentially sustaining trading momentum.
Over the past two weeks, options market data has shown cautious approaches from market makers. The volatile conditions have led to a slight uptick in implied volatility (IV) for major options terms. Many traders are currently favoring short-term profit-versus-profit (PVP) strategies, drawn to the cost-effectiveness of buying options.
When writing, Bitcoin is trading above $100,000, marking a slight decline of 0.60% in the past 24 hours. However, BTC has gained 14.40% in the last month. The rally has been driven by several factors, including the recent Consumer Price Index (CPI) report showing inflation in line with expectations and growing anticipation of a Federal Reserve interest rate cut on December 18.
Meanwhile, Ethereum has not experienced the same explosive gains as Bitcoin this year. Despite that, ETH has shown resilience. Currently trading above $3,875, Ethereum faced a decline of 0.80% in the past 24 hours. Its market cap now exceeds $468 billion. Though ETH has yet to hit a new all-time high, traders remain optimistic.
Since November 22, Ethereum ETFs have seen consistent inflows. According to SoSoValue, net inflows totaled $1.97 billion by December 12. This steady interest indicates that investors still see long-term potential in Ethereum, even if its short-term performance has lagged behind Bitcoin.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
