BTC Price Drops To $28k Amidst Expiring Options And Market Downturn
- Bitcoin and Ethereum have experienced a significant downturn, down by 7%.
- 25,000 BTC and 217,000 ETH options are set to expire, with a notional value of $0.72 billion and $4.2 billion, respectively.
BTC and ETH are down over 7%, as 25k BTC and 217k ETH options are about to expire. Coinbase gains Bermuda license amidst market downturn and possible exit from the US.
Greeks.live reported that the cryptocurrency market is experiencing a downturn as 25,000 BTC options and 217,000 ETH options are about to expire. The BTC options have a put-call ratio of 0.7 and a max pain point of $29,000, with a notional value of $0.72 billion. Meanwhile, the ETH options have a put-call ratio of 0.83 and a max pain point of $1,950, with a notional value of $4.2 billion.
Bitcoin, the largest cryptocurrency by market capitalization, has continued its two-day slump, dropping below $28,000 on Thursday. BTC was recently trading at around $28,192, down 2.28% over the past 24 hours, according to Coinmarketcap data.
However, the BTC/USD trading pair on the Coinbase exchange fell to $27,991 shortly before U.S. equity markets closed but later rebounded, TradingView data showed.
Coinbase was recently granted a license to operate in Bermuda, which some consider part of their global push. However, if Coinbase leaves the U.S. market, many U.S. traders may exit as they may not feel confident trading on decentralized exchanges. This could lead to a significant shrinkage of the global crypto market.
Bitcoin is expected to struggle until regulatory clarity, meaning prices may continue to drift lower. Ethereum, the second-largest cryptocurrency by market value, has also experienced a downturn, recently dropping nearly a percentage point to change hands at around $1,945. ETH fell to $1,918 at one point, its lowest point in a week. BTC and ETH were down nearly 8% for the past seven days.
Most other major tokens were trading in the red, with payments-focused cryptocurrencies XRP and Litecoin recently down over 5%.
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