As more people sold their Bitcoin, the price dropped below $41,000.
It is not known if Bitcoin will keep falling, but people are paying attention to Bitcoin and Ethereum options that are expiring today.
A company called Greeks. live, which is in Singapore, says that on January 19, a lot of Bitcoin and Ethereum options will end. 22,000 Bitcoin options and 211,000 Ethereum options will expire.
So, the BTC options have a Put/Call Ratio of 1. If the price drops, the most money that could be lost is $44,000, and the total value is $890 million.
When we look at Ethereum, there are options for ETH that have a Put/Call Ratio of 0. 55, a maximum loss of $2,500, and a total value of $520 million.
Greekslive said that the Pull/Call ratio reached 1. 1 for the first time in the bull market.
The Bitcoin Spot ETF’s effect lessened because the volatility decreased and Maxpain got closer to the delivery price for the first time this year.
PCR reached 1. 1 in the bull market for the first time, showing that bearish forces were stronger this week.
The Bitcoin Spot ETF transition and Grayscale selling off their Bitcoin seem like it will bring more money into the crypto market in the long run. But in the short term, it looks like the selling will increase.
“The next big event that could cause a lot of excitement is when Bitcoin’s supply is cut in half. “
The put/call ratio is found by dividing the amount of put options by the amount of call options. A ratio less than 1 shows there are more things being bought than sold, which suggests prices are going up.
A ratio above 1 means there are more people betting that the stock price will go down than those betting it will go up. This shows a pessimistic trend. A ratio close to 1 means the market is not favoring either buyers or sellers.
Bitcoin has a rate of 1. 1 and Ethereum has a rate of 0. 55 So, if the ratio is above 1 for BTC, it means more Bitcoin is being sold than bought, and the price is going down. But for ETH, it shows a positive trend. However, we need to wait and see how these rates, along with other information, will impact prices.
This is not advice on where to put your money.