Today there is a $3.6 Billion Options Earthquake in Bitcoin and Ethereum! Here is everything you need to know...

The leading cryptocurrency Bitcoin has recently made a move, rising from the level of 105 thousand dollars to 109 thousand dollars.

While the uncertainty of whether this rise will continue remains, today, as on every Friday, the expiration date for option contracts has arrived in the crypto market.

According to the first weekly data of July, on July 4th, options worth 3 billion dollars of Bitcoin (BTC) and 612 million dollars of Ethereum (ETH) will expire on the Deribit derivatives exchange.

Accordingly, the Put/Call ratio for BTC options is 1.05, with a maximum loss point of 106,000 dollars and a conceptual value of 3 billion dollars.

When we look at Ethereum, ETH options have a 1.24 Put/Call Ratio, a maximum loss point of 2,500 dollars, and a conceptual value of 612 million dollars.

The maximum pain point is the level at which the cryptocurrency price settles at a certain value as it approaches the expiration date of an option, leading to significant losses for the maximum number of option investors.

At this point, the expiration of the $3 billion options on July 4th could see significant volatility in the Bitcoin price. The maximum pain point is at $106,000 for BTC and $2,500 for Ethereum, while investors could push prices to these levels through market manipulation. Indeed, market prices are above the maximum pain point.

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 means that there are more calls than puts, indicating a bullish trend. A ratio above 1 means that there are more puts than calls, indicating a bearish trend. A ratio close to 1 indicates that the market is balanced or neutral.

The ratio for Bitcoin is 1.05, while for Ethereum it comes out to be 1.24. This ratio for BTC indicates a balanced, horizontal market at 1, while for Ethereum, it is above 1 and indicates a downward trend.

However, time will show how these ratios will affect the price. At this point, do not make your investment decisions based on a single data point or report.