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The king of cryptocurrencies continues to find buyers at $29,170 as the article is being prepared. The critical threshold has not been surpassed. Since BTC has not yet regained $29,700, the downward trend in altcoins continues. On the other hand, Bitcoin is facing the risk of testing the $28,800 support again. So, what can we expect for cryptocurrencies after the $2 billion option that will expire today?
Bitcoin Options
Large-volume Bitcoin option contracts will expire today as we approach the end of the month. This could be enough to shake up the crypto markets, which have been sluggish for weeks. The biggest Bitcoin option expiration event in the next two months will occur on July 28th with the expiration of 71,000 BTC contracts.
The nominal value of this week’s expiration event is $2.08 billion, making it one of the largest events that have occurred for some time. In addition, the $29,000 level is a maximum loss point and is quite close to the current price.
The maximum loss point is the price level where the highest number of open contracts is located. It is also the level where the maximum loss will occur when the contracts expire.
What Will Happen to Bitcoin and Crypto?
The put/call ratio of expiring BTC option contracts today is 0.57. This means that there are almost twice as many call contracts sold as put contracts. This ratio is obtained by dividing the number of short contracts (puts) by the number of long contracts (calls). In addition, values below 1 indicate more call contracts, which generally indicate a bullish sentiment for the underlying asset.
Greeks Live argued in the latest market assessment that options have a significant impact:
“The monthly expiration of positions did not cause much change, and whales are being cautious as they exit. Bears need to be more patient and calm over time.”
In addition, there are 600,000 Ethereum option contracts expiring today, with a nominal value of $1.12 billion. The same situation applies to ETH. The maximum loss point for this is also at $1,850.
As a result, the current outlook indicates that a downward movement is more likely in the coming hours. It would not be surprising if the price falls to $29,000 or below today.
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