While Bitcoin Stalls, Ethereum Rally Has Started! But There's a Problem: "Today, a $6 Billion Options Earthquake Will Occur in BTC and ETH!"

The leading cryptocurrency Bitcoin (BTC) continues to consolidate after the records it achieved last week, while Ethereum (ETH) and altcoins are on the offensive.

While ETH experienced an increase of over 20% in the last seven days, XRP, Cardano (ADA), Dogecoin (DOGE), and Stellar (XLM) also saw significant increases among altcoins.

As the bullish sentiment in the market continues, today, like every Friday, the expiration date for options contracts in the crypto market has arrived.

According to the weekly data for the third week of July, on July 18, Deribit derivatives exchange will expire options worth 4.95 billion dollars in Bitcoin (BTC) and options worth 880 million dollars in Ethereum (ETH).

Accordingly, the Put/Call ratio for BTC options is 0.78, while the maximum loss point is 114,000 dollars and the conceptual value is 4.95 billion dollars.

Looking at Ethereum, ETH options have a Put/Call Ratio of 1.04, a maximum loss point of $2,950, and a conceptual value of $880 million.

The maximum pain point is the level at which the cryptocurrency price settles at a certain value as it approaches the expiration date of an option, leading to significant losses for the maximum number of option investors.

At this point, the expiration of the $4.9 billion options on July 18 may lead to significant volatility in the Bitcoin price. The maximum pain point is at $114,000 for BTC and $2,950 for Ethereum, while investors may push prices to these levels through market manipulation. Indeed, market prices are currently above the maximum pain point.

Institutions are Coming!

Greeks.live analysts stated that Ethereum has quickly taken over the bull market and that market sentiment has sharply shifted towards optimism.

Analysts noted that the options market is beginning to approach FOMO and that institutional investors are starting to lose their cool and enter the market.

"Ethereum led the recovery of all altcoins, and the ongoing upward trend without any pullbacks greatly encouraged market participants and further boosted their expectations.

The call option (bull bet) has seen an increase in transactions over the past two weeks, while institutions are also changing their positions.