May’s First Option Data Revealed: Potential Uptrend Signals for Bitcoin (BTC) and Ethereum (ETH)

  • According to data from Greeks.live, 23,000 Bitcoin and 330,000 Ethereum options are set to expire on May 3.
  • Bitcoin fell below $60,000 during the downturns that began in April, with the BTC price retreating to $56,000 before recovering to near $60,000.
  • With an increase expected in BTC and altcoins, attention has turned to the Bitcoin and Ethereum options that will expire today.

As Bitcoin and Ethereum options near their expiration date, investors are closely watching for potential market impacts. The current put/call ratios suggest a bullish trend, but other factors could influence the final outcome.

Impending Expiration of Bitcoin and Ethereum Options

Based on data from Singapore-based crypto options data platform Greeks.live, 23,000 BTC and 330,000 ETH options are set to expire on May 3. The Put/Call Ratio for BTC options is 0.49, with a maximum loss point of $61,000 and a notional value of $1.4 billion. For Ethereum, the ETH options have a Put/Call Ratio of 0.36, a maximum loss point of $3,000, and a notional value of $1 billion.

What Does the Put/Call Ratio Indicate for Bitcoin and Ethereum?

The put/call ratio is calculated by dividing the number of put options by the number of call options. A ratio below 1 indicates more buying than selling, suggesting a bullish trend. A ratio above 1 indicates more selling than buying, suggesting a bearish trend. A ratio close to 1 indicates a balanced or neutral market. For Bitcoin, this ratio is 0.49, and for Ethereum, it is 0.36. Although these ratios suggest a bullish trend for BTC and ETH, they alone are not sufficient data for predicting a rise or fall. How these ratios, along with other data and signals, will affect prices will be revealed in time. It is important not to base your investment decisions on a single data point or report.

Conclusion

As the expiration date for a significant number of Bitcoin and Ethereum options approaches, investors are closely watching for potential impacts on the market. Current data suggests a bullish trend, but other factors could influence the final outcome. As always, it’s crucial to consider multiple data points and signals when making investment decisions.

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