On November 27, Deribit disclosed vital information regarding the impending expiration of cryptocurrency options. This announcement comes at a time when the broader crypto market capitalization has surpassed $3.09 trillion, reflecting a notable increase of over 3.7% within the last 24 hours.
According to Deribit”s latest information shared on its official X channel, more than $15.4 billion in options for Bitcoin and Ethereum are set to expire on November 28 at 08:00 UTC. This expiration marks the conclusion of a particularly volatile month for the cryptocurrency market.
The options set to expire indicate a Put/Call Ratio of 0.58 for Bitcoin, suggesting a dominance of call options in the market, with a Max Pain Point established at $100,000, which is significantly higher than Bitcoin”s current trading price. This heightened interest in calls may signal an improving sentiment among traders following recent market fluctuations.
For Ethereum, the options expire with a Put/Call Ratio of 1 and a Max Pain Point of $3,400, which also exceeds the current price of the asset. Deribit emphasized that the recent market deleveraging has led to a more neutral positioning among traders, stabilizing around crucial support and resistance levels.
As of the writing of this article, Bitcoin is trading above $90,000, having reached over $91,000 earlier, driven by increased optimism in the market. The asset has seen an over 4% rise in the last 24 hours, fueled by various factors including heightened institutional interest.
Institutional demand for Bitcoin has been bolstered by recent announcements from major financial entities. Notably, JPMorgan has introduced new cryptocurrency products linked to BlackRock”s Bitcoin ETF, IBIT, which is noted as the most popular crypto ETF launched at the start of 2024. Furthermore, data from SoSoValue indicates that US-based Bitcoin ETFs experienced inflows exceeding $128.6 million on November 25, followed by over $21 million the next day.
Meanwhile, Ethereum is trading above $2,995, reflecting a nearly 3% increase today. Over the last 24 hours, the price of Ethereum surged from approximately $2,900 to over $3,064. Similar to Bitcoin, Ethereum has also attracted substantial institutional interest, with US-based Ethereum ETFs recording positive inflows for four consecutive days since November 21. The largest inflow occurred on November 24, totaling over $96.6 million, while the following day saw nearly $61 million in inflows.
The sentiment in the cryptocurrency markets has shifted significantly following Bitcoin”s all-time high of over $126,000 on October 6. This peak was followed by a tumultuous period characterized by a $19 billion liquidation event and widespread fear, uncertainty, and doubt (FUD) within the industry. However, Bitcoin appears to have bottomed earlier this month, and if the current trends continue, a bullish December could be on the horizon.
Despite the challenges faced in recent months, including a disappointing October and a less-than-stellar November, many investors remain hopeful as the year draws to a close. Michael Saylor, a prominent figure in the cryptocurrency space, remarked that Bitcoin”s volatility is an inherent feature rather than a flaw. This perspective may encourage more investors to adopt a long-term view, transforming weak hands into strong ones.
Overall, the global adoption of Bitcoin and Ethereum continues to grow, reflecting a maturation of these assets as they gain the trust of large investors in an increasingly regulated environment.
