Written by 11:37 am Bitcoin

This is the biggest pain point for Bitcoin and Ethereum in the current cycle

  • Bitcoin, the largest cryptocurrency by market capitalization has its maximum pain point at the $19,500 level.
  • Ethereum options worth $1.1 billion expired on October 28, two days after the altcoin ushered in a new price rally. 
  • Ethereum’s historical volatility has hit a monthly high of 57.35% in light of the massive breakout in the altcoin.

According to data from crypto options and futures exchange Deribit, on October 28, $2.4 billion worth of Bitcoin and Ethereum options expired. Over the past week, Ethereum price witnessed a massive recovery, and Bitcoin price climbed above the $20,000 level. 

Also read: Bitcoin price: BTC approaches key level at $20,750, analyst predicts decline in the asset

Large volume of Bitcoin and Ethereum options expire on October 28

Data from Deribit, a crypto options and futures exchange reveals the significance of today, October 28. A large volume of Bitcoin and Ethereum options expired today. Puts give option holders the right to sell an asset if it reaches a certain strike price by the expiration date. This makes expiration dates key to options traders, as the timing is at the heart of what makes their options valuable. 

Today options expiry is rather significant due to the volatility in Bitcoin and Ethereum prices in the week leading up to the expiration date. $1.3 billion worth of Bitcoin options and $1.1 billion in Ethereum options expired today. 

Open interest by strike price on Deribit

Open interest by strike price on Deribit

Bitcoin and Ethereum maximum pain point

The past week was an eventful one for the two cryptocurrencies, with Bitcoin price breaking past the $20,000 barrier and Ethereum yielding 17.5% gains for holders. With its rapid price movements, Ethereum’s historical volatility has hit 57.35%, a monthly high. 

Colin Wu, a Chinese journalist evaluated the data from Deribit’s charts on Bitcoin and Ethereum options and identified the $1,400 level as Ethereum’s biggest pain point. For Bitcoin the biggest pain point is the $19,500 level and the Put/Call ratio is 0.85. 

The Put/Call ratio is considered an indicator of trader sentiment and a value greater than 0.7 signals traders are buying more puts than calls. Therefore, the overall trader sentiment on Bitcoin is bullish. 

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