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- Bitcoin price remains at $29,100 with a weekly implied option volatility of 25%.
- Bitcoin option contracts expiring at $500 million have a maximum cut point of $29,500, indicating the level at which losses will be incurred.
- The put/call ratio is 0.38 at Friday expiration, which means that long positions are paid for short positions.
Price bitcoin It is at a six-week low as $530 million worth of BTC option contracts expire on Friday. The pain point, or the price at which contracts will suffer the most financial loss, is $29,500.
Interestingly, the notional value of Bitcoin option contracts that expire on August 4 is significantly lower than last week, when they were $2.09 billion.
Bitcoin Options Expiration and BTC Outlook
More than $500 million worth of Bitcoin options expire on August 4, and the BTC price is at a six-week low. Bitcoin trading volume and volatility have been relatively stable over the past two weeks.
According to data from Greeks.live, about 18,000 option contracts expire on Friday, with a put-call ratio of 0.38. The maximum pain point is $29,500. Bitcoin’s long-term implied volatility has been in an almost one-sided downtrend since March, keeping expiration prices near the pain point for an extended period of time, according to the analytics firm.
Open Interest in Bitcoin Options at Expiration According to Greeks.Live
Options data shows that the current bear market has no end in sight. Recovery of an asset may take longer than expected. Market participants remain bearish and more and more long contracts are being sold as short puts.
Bitcoin and Ethereum prices continued to decline and assets struggled to bounce back from the downtrend amid growing regulatory uncertainty and the Curve Finance exploit that rocked the DeFi ecosystem.
Frequently Asked Questions about Bitcoin, Altcoins and Stablecoins
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to be used as money. This form of payment cannot be controlled by any individual, group or entity, eliminating the need for third parties to be involved during financial transactions.
Altcoins are any cryptocurrency other than Bitcoin, but some also consider Ethereum to be a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin to be created on top of the Bitcoin protocol, and therefore an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, while their value is supported by the reserve of the asset they represent. To do this, the value of any stablecoin is pegged to a commodity or financial instrument, such as the United States dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide entry and exit for investors who want to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value as cryptocurrencies in general are subject to volatility.
Bitcoin dominance is the ratio of the market cap of bitcoins to the total market cap of all cryptocurrencies combined. It gives a clear indication of investor interest in Bitcoin. High BTC dominance usually occurs before and during a bull market when investors resort to investing in relatively stable cryptocurrencies with large market caps such as bitcoin. The fall in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in search of higher returns, often causing altcoin rallies to explode.
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