The End of the Chinese New Year Holiday May Revitalize the Bitcoin Market!

• With the upcoming option expiration date for Bitcoin and Ethereum scheduled for February 16, the crypto market is gearing up for potential effects amid positive trends.
• Bitcoin option data includes a 0.9 Put-Call Ratio, a $46,000 Max Pain point, and a $1.1 billion nominal value.
• With the end of the Chinese New Year holiday, market participants expect a revival in trading activity.

As the Chinese New Year holiday comes to an end, further revival is expected in the Bitcoin market: What do Bitcoin option data indicate?

Preparing for a Revival in the Bitcoin Market

With the upcoming option expiration date for Bitcoin and Ethereum scheduled for February 16, the crypto market is gearing up for potential effects amid positive trends. This event marks a critical point for market participants, as they evaluate the impacts of key option data metrics and recent market performance.

Bitcoin option data includes a 0.9 Put-Call Ratio, a $46,000 Max Pain point, and a $1.1 billion nominal value. Similarly, Ethereum’s option data shows a 0.62 Put-Call Ratio, a $2,400 Max Pain point, and a $570 million nominal value. These metrics provide valuable insights into the balance between bearish and bullish trends in the market.

During the Chinese New Year holiday period, the crypto derivatives market witnessed a noticeable flattening of activity. This phenomenon is commonly observed during significant holidays, reflecting a temporary slowdown in trading volumes and market participation. With the end of the Chinese New Year holiday, market participants expect a revival in trading activity.

With the anticipated return of Chinese investors to the market, there is a tangible expectation of increased market activity and trading volume. The re-entry of Chinese investors into the market after the holiday can significantly impact market sentiment and trading volumes. Their re-engagement can inject liquidity into the market and influence price movements, shaping the overall market dynamics in the coming days.

Growing Investor Optimism as the Chinese New Year Concludes

With the end of the Chinese New Year holiday, there is a sense of investor optimism in the cryptocurrency market. A notable aspect of this optimism is the increasing bets that Bitcoin will reach new all-time highs before the halving event. This sentiment reflects investors’ bullish outlook on the future trajectory of Bitcoin’s price.

The anticipation of the return of Chinese investors after the conclusion of the Chinese New Year holiday further contributes to growing investor confidence. Given its potential to influence market dynamics as of the dates, the expected return of Chinese investors is becoming a factor contributing to the increasing investor optimism.