Digital Currency Options Delivery Market Sentiment Volatility from the Biggest Pain Points of BTC and ETH

Mitigating Volatility in Digital Currency Options Delivery Market Addressing BTC and ETH's Major Pain Points

Author: Phyrex, Binance Square Creator Source: X@Phyrex_Ni

Today is the monthly options settlement, and the data is almost the same as yesterday. The biggest pain point for BTC is still $33,000, with a bear-to-bull ratio of 0.83 and a nominal capital exceeding $4 billion. The gap between the biggest pain point and spot price is over 10%, making it unlikely to reach the maximum pain point. Yesterday, many friends told me that the low possibility of this data is due to many investors hedging. However, from next week’s data, it seems to have returned to normal. The biggest pain point for next week is $37,000, and the difference between this data and the current spot price is not significant. In addition, the bear-to-bull ratio has dropped from 0.83 to 0.5, with a nominal capital of nearly $1 billion. In fact, the data for weekly settlements usually closely matches the spot price, but the price difference between monthly and quarterly settlements is significant.

In fact, the data for the next three weeks of weekly options settlements in December are quite similar, but the data at the end of the month becomes strange again. The end of December is the quarterly settlement, and the biggest pain point for BTC is currently $29,000, which is lower than today’s $33,000. The bear-to-bull ratio is 0.47. Although the biggest pain point is not friendly, there is not such a strong bearish sentiment as now. Moreover, the nominal capital has risen to $5.5 billion. In view of this, there is indeed a high possibility of hedging. Large investors lock in profits through monthly or quarterly options, while investors of cycle options are more involved in the price fluctuations.

BTC is like this, and the data for ETH is also obvious. Today’s biggest pain point for delivery is still $1,700, with a bear-to-bull ratio of 0.72 and a nominal capital of nearly $2.5 billion. Then the weekly data for next week returns to normal, with the biggest pain point of $2,100, a bear-to-bull ratio of 0.43, and a nominal capital of $420 million. Then, when it comes to the quarterly settlement at the end of December, the data returns to the biggest pain point of $1,700, a bear-to-bull ratio of 0.38, and a nominal capital of $2.5 billion. This shows that both BTC and ETH’s monthly and quarterly biggest pain points are likely to be near the cost of large capital investors. Interestingly, this situation did not occur much in the first half of this year, indicating that current spot investors may not believe in stable and long-term upward trends, and therefore lock in profits through hedging.

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