There is a lot of speculation and anxiety among traders and investors as 29,000 Bitcoin (BTC) options are about to expire today, and the crypto market is getting ready for something big. This significant event occurs against a background of mixed mood, as indicated by the Put Call Ratio of 0.86, which shows a combination of optimistic and bearish market outlooks.
Investors who enter into options contracts have the option, but not the duty, to purchase or sell Bitcoin at a specific price on or before a given date. A pinned post on Greeks.live official X handle says that the volatility index (Dvol) has decreased by 43%, representing 3% from its initial all-time high.
The published data represents a less volatile market, in which all its principal maturities from the volatility index have rapidly decreased. A downward trend will also continue in subsequent weeks, depending on the approach.
Traders Sentiment Balanced, Investors Advised to Enter Market
With a focus on the options market, market experts have been closely observing how the dynamics surrounding Bitcoin are changing. The statistic by different market analyst indicates that traders’ sentiment is still generally balanced, but it is somewhat more bearish. The price of Bitcoin may suddenly fluctuate as traders modify their positions as these contracts approach their expiration date.
Increased trading activity frequently occurs around the expiration of options contracts as investors look to profit from price changes. Bhushan Akolkar recommended on CoinGape that investors wishing to enter the market at more advantageous price points may find that the current market correction presents purchasing chances.
Available data from CoinGape shows that BTC whales have consistently accumulated more BTC amid the present volatility. Santiment also confirmed the statement, insisting that most whales and other big tone holders are becoming more active than before amid the growing market fluctuation.
Bitcoin Stability Uncertain, As the Implied Volatilities Rise by 100%
Advising investors and prospects on the current development, Akolkar recommended that effective risk management techniques, like position sizing and diversification, are crucial for minimizing losses and optimizing gains.
He also added that it’s unclear if Bitcoin’s price will continue to fluctuate or stabilize, but whichever way it goes, participants in the cryptocurrency market are always kept alert. The maximum pain points are computed at $60,000, indicating a vital price level where the most expiring Bitcoin contract options are considered worthless – with $2 billion in total value.
The volatility in the market has seen a peak in almost one year. Bitcoin, however, has seen a significant increase in its price, passing $69,00 and hovering over $70,000. The coin only has a 10% decline afterward. Data from Greeks.Live has it that the Implied Volatilities (IVs) had increased by 100%. Given the recent volatility in Bitcoin’s price and the Put Call Ratio of 0.86, traders are preparing for more swings.
News of Expiring Bitcoins Gains Momentum, SEC Denies BlackRock Request
The uproar surrounding this development has gathered a lot of attention from different parts of the world. Options trading, on the other hand, has experienced a significant increase in both trading positions and volume.
Most options are greatly favoured in this case because of its multiplicity, securing high leverage and spot buyers – allowing them to participate in short and long positions. The United States Securities and Exchange Commission (SEC) on March 7, has a drawback on the request for BlackRock to start trading options on BTC ETF until April 24.
SEC had requested for public opinion in the past over Nasdaq’s position to trade options on the BlackRock spot BTC ETF. Blackrock, on the other hand, has sent an application to SEC requesting to buy spot BTC ETFs to Global Allocation Fund (which is also managed by them).
However, as at press time, the price of Bitcoin has gone below its all time high to trade at $66,674.59 in 24 hours. Data from CoinMarketCap has it that the BTC recorded $48,845,375,553 in trading volume in the last 24 hours.
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